Currently Not Collectible Status: An IRS Tax Relief Program

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One of the programs that the IRS offers to resolve unpaid tax liabilities is the Currently Not Collectible Status. A taxpayer who has delinquent tax liabilities but who has a demonstrated inability to pay toward the tax based on their income, expenses, and assets may be a good candidate for the Currently Not Collectible Status.

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When the IRS places a tax account into Currently Not Collectible Status, they will cease using the collections tools at their disposal, such as wage garnishments and bank levies, to secure the debt and will also not be demanding monthly payments from the taxpayer.

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If a taxpayer finds themselves in a position where they have unpaid tax liabilities but cannot afford to pay the debt either because of a reduction in their income or due to the magnitude of their reasonable living expenses, they may submit information to the IRS regarding their income, expenses and assets to qualify them for a Currently Not Collectible Status.