We received a call from a person who received an IRS notice that stated he owed $13,000. He thought that the reason for his debt was due to not having enough withholdings. In addition to this, the person was drowning in medical bills due to health issues so he could not afford to pay the IRS.
We started the investigation by calling the IRS to find out what this client’s current situation was. A stay of enforcement was not required as the file had not been transferred to a revenue officer. Our tax team obtained the client’s tax records and started to view the client’s tax history. We quickly discovered that the balance was actually higher than what the client thought. The total balance owed with penalties and interest fees was $15,193.53. This balance was due to the IRS assessing additional taxes to the tax year 2016. This additional amount was assessed in 2018 which meant that the balance expiration date (statute of limitation) would be until 2028. During the investigation we also double checked to confirm that the client had all tax years filed. We learned that tax year 2017 was missing to be filed and if filed a refund would possibly be granted. Not to mention, this year was to be filed as soon as possible because an intent to seize the client’s social security income was already sent out to him.
After reviewing his financial profile our tax team learned he was a good candidate for a Currently Not Collectible status. A Currently Non Collectible status means that the IRS would place a hold on collection activity as long as the client’s financial situation did not change. The IRS could review his financial situation every now and then to see if the financial situation has improved. The client decided to move forward with the application for CNC status. We helped the client complete the CNC application by completing his details and current financial information. We also helped the client gather documents that the IRS requested to prove his financial hardship. We sent the application to the IRS and after 2 weeks the Currently Not Collectible application was reviewed and approved. The client was extremely relieved with the great news.
CNC was set in place with the IRS as follows:
Total amount owed: $13,123.53
Resolution: Currently Non-Collectible
Settled Amount: $0 collected and will not be reviewed by the IRS unless financial situation changes
Phases worked: Investigation, Compliance & 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 attorney, and CPA’s. 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.