IRS Hardship Program CNC

How to understanding the IRS Hardship Program CNC (Currently Not Collectible).  

When you are put into a CNC (currently not collectible) status or a non-collectible status under the IRS. It means you do not have the ability to make an IRS payment at the present time. However, this does not mean you will always stay in this status. This program is designed to be a temporary solution. Why? The IRS can review your current tax returns to verify if you are still in a non collectible status. If they deem you are making enough money to perhaps be put into a payment plan. They will bounce you out of the program and send you a letter. Hardship cases can be reactivated if it appears there is a change in the taxpayer's ability to pay indicating collectibility. (credit Irs.gov)

The CON: If you are in this status and owe more than $10,000.00 in back taxes a federal tax lien can / will be filed.  In general, a Notice of Federal Tax Lien (NFTL) should be filed on accounts being reported CNC when the aggregate unpaid balance of assessments equals or exceeds $10,000.00 (credit Irs.gov). 

If you own any real estate having a tax lien can become problematic if you are selling a home or if you may want to refinance a home. To learn more about tax liens and how they impact you go here to read more. Federal Tax Liens 

Anytime when you file a tax return and it generates a new tax bill, that new tax bill will kick you out of any tax resolution program you may be in. This includes CNC, payment plans and OIC’s offer in compromise. It is very important to understand the pro’s and con’s so you can better manage your tax debt.

Contact us today to learn more about THE TRUTH of IRS workout solutions. Unlike many tax firms our fee's are not a one size fits all and are tailored to your needs. Don't pay thousands of dollars to a tax resolution firm just to find out they can't do better than you can. Give us a try today! 904-374-8960 - Please leave a detailed message and WE will call you back.

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