There are many options when it comes to getting tax debt help, depending on how much you owe, your ability to pay, your financial situation, and more. One of those options is called Currently Non-Collectible, or CNC, and this is where you ask the IRS to hold off on collecting your tax debt. Help getting a CNC status and all returns filed correctly is what Kansas City Tax Mediation can do for you!
To qualify for CNC, the IRS must agree that you have a financial hardship. For example, you must have very little money each month after bills are paid. If they agree, the IRS will temporarily stop collecting the tax you owe, though it will continue to accrue any interest and late penalties. This is a great option for taxpayers that are unemployed or laid off and looking for tax debt help. The IRS will keep you in this Currently Non-Collectible status until you start making more money again.
One of the negative aspects to a CNC is the IRS will most likely still file a federal tax lien on you. Tax liens are reported to the credit bureaus and will hurt your credit score. Even though you’re working with the IRS and getting tax debt help, the IRS still wants to protect the debt you owe them.
But like I said, there are many options to getting tax debt help and Currently Non-Collectible status is only one of them. We have experience helping people with all kinds of individualized issues. Call Kansas City Tax Mediation today and set up your free consultation.