Skilled CNC Lawyer in Cherry Hill, NJ Assists Individuals in Burlington County, Camden County, Gloucester County, and Throughout NJ Who Are Unable To Pay Their Outstanding Tax Bill
When you can’t pay your taxes in full, you can set up an installment agreement with the Internal Revenue Service (IRS), which is a payment plan that involves monthly payments to repay your debt over a set period of time. But what happens if you do not have the funds to participate in an installment plan to pay the tax that you owe?
When taxpayers find themselves in this situation, the IRS recognizes that sometimes taxpayers have an unexpected turn of events financially and the agency offers a remedy. The IRS has the ability to declare that a taxpayer is “uncollectible” if that individual can demonstrate to the IRS that collecting the tax would cause the individual financial hardship.
The IRS may grant Currently Not Collectible (CNC) status, which allows those individuals, sole proprietors, limited liability companies (LLCs), and partnerships that are in approved financial hardship situations to postpone paying their outstanding tax bill until their financial situation improves. And while that may sound rather simple conceptually, in practice the process of convincing the IRS that you cannot afford to pay is cumbersome.
At The Law Offices of Michele Finizio, our skilled New Jersey currently not collectible hardship attorney has extensive experience advocating for clients who are unable to pay their tax bills, successfully securing the required financial hardship status with the IRS.
Facing a Tax Issue And Have Questions? We Can Help. Contact The Law Offices of Michele Finizio Today At 856-888-9059 Or Fill Our Our Convenient Online Contact Form For A Free Consultation About Your Case.
Dedicated New Jersey Attorney Successfully Secures Financial Hardship Status And Currently Not Collectible For Clients Who Are Unable To Pay Their Taxes
If you see no way to pay your tax bill without enduring financial hardship, it is up to you to prove to the Internal Revenue Service (IRS) that you are unable to pay. You will need to provide documentation to illustrate your financial situation, including:
- Bank account statements: checking, savings
- Receipts for necessary monthly living expenses: rent, utilities, food, transportation
- Income: paystubs, bank deposit slips, payment receipts
One mistake many people make is to ignore the tax bill they receive from the IRS. While you may forget about an outstanding tax bill, the IRS will not. The IRS does, in fact, place taxpayers into currently not collectible status if they are unable to locate them, and the agency also imposes tax liens, penalties, and wage garnishment. So rather than hoping your problem with the IRS just goes away, consult with an experienced New Jersey currently not collectible attorney to advocate on your behalf.
Trusted New Jersey Attorney Advises Clients In South Jersey Regarding Best Options For Resolving Their Unpaid Tax Debt With The IRS Including Hardship & Currently Not Collectible Status
Applying for not collectible hardship (CNC) status with the IRS may sound like an easy fix to make your tax debt disappear — at least temporarily. But being granted hardship status often comes with an IRS tax lien, which is a federal claim to your assets. A tax lien alerts creditors that the IRS has a legal right to your property, showing up on your credit report and impeding your ability to borrow money.
There are other options for repaying your tax debt, from installment agreements to short-term extensions on your payment plan. Let us help you determine the best option for resolving your unpaid debt with the IRS. The trusted New Jersey currently not collectible hardship attorney at The Law Offices of Michele Finizio offers a free, confidential consultation to those New Jersey taxpayers who are having difficulty paying their tax debt. Schedule your complimentary case evaluation today.
Frequently Asked Questions About Currently Not Collectible Hardship Charges in New Jersey
I was granted IRS currently not collectible (CNC) hardship status. How long does that CNC classification last?
After you have obtained currently not collectible hardship (CNC) status from the IRS, your financial situation will be reviewed every year to ascertain whether or not you are able to pay your taxes again. If you file an income tax return, the IRS will review the income that is listed on your tax return to make this determination. If you do not file an income tax return, the IRS will review the information included on tax forms such as a 1099 or W-2. If your financial situation has improved, and your income exceeds the living expenses that were included in your application for currently not collectible hardship status, then the IRS may remove you from the CNC classification and ask for new terms for the repayment of the taxes that you owe. There is a collection statute of limitations that provides that after ten years, the IRS is no longer able to collect unpaid tax unless the collection statute has been extended due to the taxpayer leaving the country, filing an offer in compromise, or some other action. So if your financial situation were to remain the same, after ten years, the IRS will in most cases eliminate the taxes, interest, and penalties that you owe. If you are financially unable to repay your outstanding tax debt, contact a skilled New Jersey currently not collectible hardship attorney at The Law Offices of Michele Finizio to determine whether you meet the criteria for financial hardship.
What expenses does the IRS consider when determining whether to grant hardship status?
The Internal Revenue Service (IRS) will consider several different expenses in determining whether an individual qualifies for hardship status. These include housing, food, personal care, transportation, utilities, and miscellaneous expenses. The IRS uses national standard costs for these monthly expenses and if you are spending more than these standard amounts, then you are expected to reduce those monthly expenses and pay down your tax debt. As with many things, there are some exceptions; it is best to consult with a skilled New Jersey currently not collectible hardship attorney to determine what is best for your personal situation. The Law Offices of Michele Finizio offers a free, confidential consultation; schedule your appointment with our office today.