Just What is a Non Collectible Status?
This is the page that the IRS does not want you to see.
You’re Broke!! They cannot get blood from a stone! You do not have any cash and the IRS can not get something from you that you do not have. Simple!
So how does this Currently Not Collectible program work?
A person may be thought about to be Currently Not Collectible if he fulfills the following:
If he doesn’t have any possessions, for the IRS to levy taxes.
If he doesn’t have a stable income or indicates to pay the taxes owed.
If the income of the tax payer is less than the minimum that is required to meet his basic living costs.
Once a person is thought about as Currently Not Collectible, all the taxes imposed on him get momentarily suspended. Even if a person is considered to be Currently Not Collectible, she or he is still accountable to pay the cash owed and the interest accrued.
The financial status of Currently Not Collectible individual is monitored, so that he can return to pay taxes when he returns on track. This is done once in a year, and the IRS likewise demands the tax payer to send a copy of his income tax return so that they can compare and see that everything matches. This is the reason that the returns have to be accurate with no mistakes in them.
But the story is not over yet. There is yet another choice for the tax payers to be favored by the IRS. If the person continues to have extremely less income and to be in the Currently Not Collectible status for a duration of 10 years, the IRS is responsible to remove all the taxes he owes.
In other words, the tax payer doesn’t have to pay any taxes or charges that had actually been levied on him up until now.
So if this is truly your circumstance, being stated Currently Non-Collectible is a wonderful option for some home owner. If you are getting close to the time that the statute of constraints goes out, your Revenue Officer may get more aggressive and aim to get you to sign something. Please do not be deceived by this.