Currently Non-Collectible Status and exactly what it suggests.
This is the page that the IRS does not desire you to see.
You’re Broke!! They cannot get blood from a stone! You do not have any money and the IRS can not get something from you that you do not have. Basic!
So how does this Currently Not Collectible program work?
An individual may be considered to be Currently Not Collectible if he fulfills the following:
If he doesn’t have any assets, for the IRS to impose taxes.
If he does not have a steady income or implies to pay the taxes owed.
If the income of the tax payer is less than the minimum that is required to fulfill his basic living costs.
Once a person is considered as Currently Not Collectible, all the taxes levied on him get briefly 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 accumulated.
The financial status of Currently Not Collectible person is kept track of, so that he can get back to pay taxes as soon as he gets back on track. This is done when in a year, and the IRS also demands the tax payer to send a copy of his tax returns so that they can compare and see that everything matches. This is the reason why the returns need to be accurate with no errors in them.
However the story is not over yet. There is yet another option for the tax payers to be favored by the IRS. If the individual remains to have very less income and to be in the Currently Not Collectible status for a duration of 10 years, the IRS is accountable to remove all the taxes he owes.
Simply puts, the tax payer doesn’t need to pay any taxes or penalties that had actually been levied on him up until now.
So if this is really your situation, being proclaimed Currently Non-Collectible is a great choice for some home owner. If you are getting near the time that the statute of restrictions runs out, your Revenue Officer might get more aggressive and attempt to get you to sign something. Please do not be deceived by this.