$17,236 In IRS Tax Debt Resolved with A Currently Not Collectible Status ($0 Paid)

SITUATION:

An elderly married couple contacted us with a tax debt of around $17K. They were very scared of the collection notices they were receiving and didn’t know how to deal with this situation. Living on a fixed income had not allowed them to afford to pay the taxes they owed for several years.

INVESTIGATION PHASE:

We began our investigation by studying the case and obtaining a clear picture of their finances to provide a realistic resolution recommendation. Our tax team helped organize a detailed

financial profile where all income, expenses, assets, and liabilities were listed. We also requested proof of income and a copy of the statements. Once we had the financials completed, we then assigned an Enrolled Agent to the case and requested their master file. We reviewed the balance, penalty, and interest owed for each year, and we also reviewed when the statute of limitations would expire for each year of taxes owed. It was determined that clients had 3 years that would reach the collection statute expiration date within 2 weeks, which is when the IRS could no longer collect on the amount owed.

During our investigation phase, the 3 years reached the statute of limitations and their balance was reduced to half of what they initially owed.

With their fixed income and no assets, it was determined that the best option was to set up a currently not collectible (CNC) status. While the account is in CNC status, the IRS will not engage in further collection activity as long as their financial situation remains the same, and they must stay in compliance with all future tax returns. With this option, they don’t have to make monthly payments. They agreed to have us set up the CNC Status.

RESOLUTION PHASE:

During this phase we gathered their current financial supports, proof of income, bank statements, hardship letters, and proof of expenses. We then contacted the IRS and presented their case. After many calls and faxes, the currently not collectible status was approved! We received the approval notice 2 weeks after the verbal acceptance. We

reminded them to please make sure to file all future returns on time and if any balances are due, these must be paid. Also, to provide updated financials if requested by the IRS. This will avoid the CNC status being revoked. After the statute of limitations expires, the IRS is no longer allowed to collect on the debt. That means the clients could potentially be paying back

$0 on their entire tax debt as long as their financial situation continues the same. They are very happy and have peace of mind that they will not have to pay back on any taxes since their

financial situation will not be improving, considering they are retired.

The total amount owed: $17,236

Resolution: Currently Non-Collectible

Phases worked: Investigation and Resolution

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DISCLAIMER:

This example is an actual example of a client who enrolled in the tax program. Every case is unique and this is not an extension that you will receive the same resolution as they will. Your situation is unique, as are all tax cases. The team has extensive experience, has former IRS employees, special officers, enrolled agents, tax attorneys, and CPAs. Our tax team will work diligently with a flat fee to solve the tax issue you have for the best possible resolution for you. That means doing all possible to ensure you pay the lowest amount of taxes legally required based on your situation, allowable deductions, finances, and other factors.