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 can’t 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 might be considered to be Currently Not Collectible if he fulfills the following:
If he doesn’t have any possessions, for the IRS to impose taxes.
If he does not have a stable income or means to pay the taxes owed.
If the income of the tax payer is less than the minimum that is needed to fulfill his fundamental living costs.
When an individual is thought about as Currently Not Collectible, all the taxes levied on him get briefly suspended. Even if a person is thought about to be Currently Not Collectible, she or he is still liable to pay the cash owed and the interest accrued.
The financial status of Currently Not Collectible individual is kept track of, so that he can return to pay taxes once he returns on track. This is done once in a year, and the IRS likewise demands the tax payer to send out 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 precise with no errors 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 earnings and to be in the Currently Not Collectible status for a duration of 10 years, the IRS is liable to remove all the taxes he owes.
Simply puts, the tax payer does not have to pay any taxes or charges that had been imposed on him so far.
So if this is really your situation, being declared Currently Non-Collectible is a great alternative for some individuals. If you are getting close to the time that the statute of limitations goes out, your Revenue Officer might get more aggressive and attempt to get you to sign something. Please do not be tricked by this.