The term CNC (Status 53) means exactly what it implies. There are taxpayers that do not have the financial ability to pay the IRS anything; not even on a monthly basis without it causing a financial hardship. Some of these taxpayers qualify as Currently Not Collectible.
Once the CNC status 53 is approved, the taxpayer is not required to make any payments to the IRS. In addition, all IRS aggressive collections actions are immediately stopped. The IRS usually permits the taxpayer to maintain this status for 12 to 24 months to improve their financial condition. Unfortunately, interest and penalties will continue to accrue.
The IRS will re-evaluate your financials at the end of the non-collectible period. At that time, if it appears you have positive cash flow and the ability to make monthly payments to the IRS, they will establish an Installment Plan and require you to make monthly payments.
However, if your monthly allowed expenses continue to be greater than your monthly income, the IRS will continue to deem you uncollectible and you will not be required to make tax payments of any sort. The CNC Status 53 may be the solution for you, if you have expenses that are greater than your income.
Call us NOW for your FREE Tax Relief consultation at 1.888.321.8812. It will be the Best Decision You Make Today!