If the Internal Revenue Service (IRS) determines that it cannot collect the tax that you owe through an installment agreement, offer in compromise, or by other means, then it can place your account in Currently Not Collectible (CNC) status. This means that the IRS will not try to collect the amount that you owe them as long as you are in this status. The benefit is that the 10 year statute of limitations that the IRS has to collect your tax will continue to run while you are in CNC status. You will remain in CNC status as long your financial situation remains the same.
CNC status could be a great option for you if your income and asset balance are negative. The test for CNC is fact-based, and it will depend on your individualized circumstances. Call us today at (408) 459-8427 for a free 30-minute consultation to analyze your options to resolve your tax problems.