Currently Not Collectible or hardship status – a temporary solution to an IRS problem.
Currently Not Collectible, or what is sometimes called hardship status, is a temporary solution to an IRS problem. Generally it is used when someone is having a difficult time economically, for instance when they have lost their job or had their hours cut back. It can also be used when a statute of limitations is close to expiring or in conjunction with a bankruptcy.
Currently Not Collectible is a status where the IRS agrees that the taxpayer has no ability to pay their debts on a monthly basis. Interest and penalties will continue to accrue against the debt. However, the statute of limitations will also continue to run as well which means that you will be closer to when the IRS can no longer collect the debt.
As a local Sarasota Tax Attorney concentrating in IRS Problem Resolution, I can help you decide if Hardship status is the right solution to your IRS tax debt problem. Please call the Law Office of Mary E King for your initial consultation at 941.906.7585 or email Sarasota Tax attorney Mary King Esq. for your IRS Tax help consultation.