Currently
Not Collectible
Definition: Currently Not Collectible means that a taxpayer
has no ability to pay his or her tax debts. The IRS can
declare a taxpayer "currently not collectible,"
after the IRS receives evidence that a taxpayer has no
ability to pay. Such evidence is usually obtained from
the taxpayer on IRS Form 433-F, Collection Information
Statement. A taxpayer can request "currently not
collectible" status by submitting Form 433-F to an
IRS Revenue Officer or the IRS Automated Collection System
unit.
Once the IRS declares a taxpayer currently not collectible,
the IRS must stop all collection activities, including
levies and garnishments. The IRS must send an annual
statement to the taxpayer stating the amount of tax
still owed. This annual statement is not a bill.
While in not collectible status, the 10-year statute
of limitations on tax debt collection is still running.
If the IRS cannot collect the tax within the 10-year
statutory period, then the tax debts will expire.
Being declared "currently not collectible"
is one of five ways to get out of tax debt. A taxpayer
facing significant financial hardships or tax debt burdens
should seek the advice of a tax professional specializing
in tax debts.
Also Known As: CNC, transaction code 530
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