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Summary: If collecting anything from a taxpayer will cause him financial hardship,  the IRS cannot collect and will place a taxpayer into the "CNC Tax Program."  The catch: the IRS decides if it is financial hardship. 

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If collecting any money at all from a taxpayer would cause him/her to suffer from financial hardship, then the IRS is required - by its own regulations - to place the taxpayer in what is referred to as "Currently Not Collectible" (CNC) status. When a taxpayer is placed in this status, the IRS will generally not take any collection action against the taxpayer for at least 2 years. If the IRS decides to take a taxpayer out of CNC status, then the IRS will send a letter.

While CNC status is mandated by IRS guidelines in certain scenarios, that does not mean that the IRS will take your word for it, and it does not mean that the IRS will follow its own procedures. The IRS will most likely ask for documentation to support what you claim are your finances. However, depending on the amount you owe, or the amount of your income, the documentation request may be limited in scope.

Note: A similar rationale (financial hardship) that is applied for CNC status is also applied when the IRS is considering whether or not to return/release levied funds to a taxpayer. Speak with a professional  for more information.

 

Sometimes You Just Want Answers

Honest Answers

Not a Sales Pitch

It has been a while since the demise of large national tax resolution firms like Tax Masters, JK Harris, and Roni Deutch, and the landscape of the Tax Resolution field has changed substantially. But in some ways it has remained very much the same.


Firms like Tax Masters went to financial markets and raised capital for advertising, and invested heavily in television commercials and sales staff to "close deals" without making sure that they were adequately staffed to take on the work that was required.

Now, most Tax Resolution firms are often smaller, more regional, and easier to manage.

Big television ad-buys and marketing initiatives are still a common feature of the "Tax Resolution Industry," however, but the sales-force is merely outsourced.

Most heavily advertised Tax Resolution brands are nothing more than referral service! And those referrals are dolled out based on how much a given "Firm" has paid the advertiser.

When you book a meeting or phone call through our site, you will speak directly with an actual tax attorney the first time you speak with anyone. We don't employ sales-people or sales firms.

Tom Tax Lawyer
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