Currently Not Collectible Status
If the IRS is currently claiming that you owe them money in back taxes and you realistically can’t afford an Installment Agreement, you may qualify for Currently Not Collectible status (IRM Section 5.16.1.) The Automated Collection System or your Revenue Officer working with Prodigy Financial will determine that paying your back taxes at this time will cause an undue financial hardship that could cause an inability to pay your necessary living expenses.
If you qualify for Currently Not Collectible (CNC) Status, The IRS will stop all collection actions against you, but interest continues to accrue on the debt and they may review your financial situation annually to determine if you still qualify. Currently Not Collectible Status can be an effective strategy when a client has an IRS balance that is close to the 10 year statute of limitations (Collection Statute Expiration Dates), or others who are on a fixed income and really can’t afford to pay back what the IRS Claims they owe. It has been a useful tool in the past to have a Social Security Levy released, as well as to buy some breathing room from the Collections Division of the IRS after a Financial or Medical Hardship. Your Team at Prodigy Financial Services Group will use your financial information to demonstrate that you are unable to make any kind of payment to the IRS.
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