Owe the IRS Money But Can’t Pay? Currently Not Collectible May Help

Can’t Pay Back the IRS? Currently Not Collectible May Be an Option: NYC Tax Resolution Attorney

It can be intimidating and burdensome if you owe the IRS money and cannot afford it.  Sometimes you may owe due to an error on your tax return you mistakenly did years ago.  Other times it may have been an error done by a tax preparer that you trusted.  It also could have been caused by extra income you earned during the year you did not expect, or a change in your tax bracket.  Maybe even your employer was not properly taking taxes out and it was not realized until the end of the year.

When the IRS calls looking for its money and you cannot afford the tax debt, you have options.  You should check to see what these options may be with our New York City tax resolution attorney.  One option that may be available for people who absolutely cannot afford a tax debt is a “currently not collectible” status.  To learn more about this, call us today for a free consultation by dialing (646) 480-2149.

What is Currently Not Collectible?

When there is absolutely no financial way for you to pay your tax debt and there is absolutely no way for the IRS to collect the money owed through the more common forms of tax resolution (including garnishing your wages), you may be able to file for “currently not collectible” status.  While you are in “currently not collectible” status, the IRS will be unable to collect on the owed taxes or penalty charges.

How to Prove Entitlement to Currently Not Collectible Status?

Establishing that you are currently not collectible is very difficult, especially without a tax resulting attorney.  You will need to demonstrate two things:

1) Your salary or wages cover no more than your necessary living expenses.  This means that the IRS cannot garnish any of your wages since your necessary living expenses are exempt.

2) You have no assets that the IRS can levy.  This is because the IRS cannot typically seize an asset that you do not have more than 20 percent equity in.  Nor will the IRS seize and sell an assert if the expenses in doing so will be more than the equity value.  For example, the IRS cannot take your vehicle if you have only pay 10% of it off.  Once you have 25% equity, the IRS cannot seize and sell it if the equity value of the car is only $500 but the process will cost the IRS $1,000 to complete.

Unsure if This is a Defense for You?  Call SAMUEL & STEIN to Learn More

There is a lot that goes into tax resolution and it can be a complicated maze with many pitfalls.  Call our experienced attorneys at Samuel & Stein today to learn how we can help you successfully navigate this matrix of tax laws and achieve financial freedom by dialing (646) 480-2149 or use the convenient “Evaluate Now” box on our webpage.  Together we can help answer your questions and protect your rights.

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