In the tax settlement method referred to as the IRS Currently Not Collectible, the taxpayer is admitting that he can no longer pay for his tax debts. The Currently Not Collectible clause is declared by the IRS, but only after it has received all the evidences necessary to show that the taxpayer is indeed, incapable of his clearing all of his debts or reducing it even a little.
To avail of this tax settlement method, the payer would have to fill out the IRS 433-F Form, otherwise referred to as the Collection Information Statement. Here, one can simply request a Currently Not Collectible status to the IRS officer or through the automated collection unit. Once the IRS receives and accepts the declaration, it would then stop its collection activities, although the annual statement of taxes due is still sent to the taxpayer.
However, this is not as easy as it seems. There is a certain process that the IRS would have to follow before it accepts the Currently Not Collectible status of the taxpayer. The IRS would evaluate your financial condition including your monthly gross income. This will be compared to the allowable expenses. Such expenses would be limited to food, housing, clothing, transportation, medical expenses, and other costs that the IRS deemed necessary to go on living.
While it is easy to say that your tax debts are Currently Not Collectible, it is still upon the IRS to approve it or not. With this said, it is best that you seek the help of the experts in order to avail of this particular tax settlement choice. The professionals in tax debts know this method well and they can help you achieve the status by guiding you with the application process and help you collate all the evidences needed by the IRS to back up your claim. Once everything is taken cared of, you will practically wipe out your tax debt clean easily.
This site is dedicated to providing you an insight into various methods of IRS tax settlement. However, keep in mind that the material provided here is for informational purposes only. Always consult a tax professional for any tax-related matters.