Currently Not Collectible Status - When you can't pay your taxes right now

Currently Not Collectible Status, or Status 53 is an option with the IRS for those who do not have the ability to pay any part of their back taxes at this time.

Although considered to be a temporary back tax solution, Currently Not Collectible Status, in conjunction with the Internal Revenue Service's Collection Statute Expiration Date has saved our clients hundreds of thousands of dollars in some cases.

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Some Quick Facts About Currently Not Collectible Status:

  • Currently Not Collectible Status protects you from all levies and garnishments.
  • If you are already suffering from levies and garnishments, placing you in Currently Not Collectible Status will release them.
  • All returns must be filed before you can be placed in Currently Not Collectible Status.
  • We will need to provide detailed financial information to prove that paying your back taxes at this time would cause you a hardship.
  • Penalties and Interest continue to accrue while in Currently Not Collectible Status.
  • Each year when you file your tax return, the IRS will re-evaluate your situation to see if you should remain in Currently Not Collectible Status.
  • Failure to file or pay new taxes will take you out of Currently Not Collectible Status and you will be open to aggressive collection action.
  • The Internal Revenue Service has 10 years to collect your back taxes before they are automatically forgiven. This Collection Statute begins when the return is filed, not when it was due.
  • If the Collection Statute Expiration Date expires while you are in Currently Not Collectible Status, you are no longer liable for the debt.
  • We often use Currently Not Collectible Status to protect our clients from levies and garnishments while an Offer in Compromise is prepared.

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