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IRS Currently Not Collectible Status - Part Three

How Do I Obtain Currently Not Collectible Status?

To obtain currently not collectible status, you will need to consider addressing your concerns with a tax attorney who is an expert in resolving IRS back-tax liability and who is competent enough to review your financial situation “for free to determine whether pursuing Currently Not Collectible status is worthwhile; if hired, he or she will also take care of the rest of this process” (Hein).

To obtain currently not collectible status, you may also contact the IRS directly and apply using Form 433-F, Collection Information Statement. When you contact the IRS, be sure to ask for an updated tax balance due which includes both interest and penalty amounts. You need to know what the balance due through to the current date. Lastly, you can also apply for currently not collectible status by filing some tax returns and beginning the application process. Keep all receipts as proof that you mailed your request to the IRS.

What Information is Needed to Request Currently Not Collectible Status?

To request currently not collectible status, you must demonstrate an inability to pay the tax debt. You must show specifically that you cannot make monthly payments. With this in mind, you will need to gather specific information and different types of documents to prove your claim. The following types of information are required to meet CNC eligibility requirements:

  • Copies of most recent paycheck stubs for each job, for the past month
  • Copies of most recent statements of all monthly income[1] that you receive
  • Copies of most recent real estate tax bill for all property[2] owned, even if owned with someone else
  • Copies of utility bills, which include electricity, water and sewer, gas, and telephone
  • Copies of lease or mortgage statement showing monthly rent or mortgage payment
  • Copies of most recent statement for all credit cards
  • Copies of most recently personal property tax bill for each car[3]
  • Proof of assets such as stocks, bonds, etc.
  • Proof of related monthly expenses specific to food and necessities, daycare, medical expenses, and court-ordered payments such as child support or spousal support

If you are married, the IRS requires you to submit the information above for both parties.

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[1] Proof of income here is specific to Social Security benefits, pension or retirement income, child or spousal support, and/or TANF.

[2] The IRS requires you to know the date you bought the property and how much you paid for it.

[3] You will need to know the mileage and monthly payment for each car owned.

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