CURRENTLY NON COLLECTIBLE

Currently non-collectible or uncollectible status is when the IRS or NYS agrees to take a monthly payment of $0 because he or she does not present the ability to make any payments. These are evaluated every year or two. You may be eligible for currently non collectible status if:

• Your monthly expenses are more than your income; or
• Your income barely covers your expenses; or
• You have no income; or
• Your only income is Social Security, welfare, or unemployment.

You will have to disclose all of your income and assets, in return the IRS/NYS will pick and choose if any assets can be liquidated or sold to pay off some of the liability.

For example, James Smith had a six figure job for a few years and was trying to be responsible with his money. He took some of the extra money he was making and invested it in stocks. He was making serious money with these stocks and kept buying and selling. The following year he lost his job and was unemployed due to alcoholism and spending more time at the casino than at his job. James decided to sell his stocks at a large gain of $75,000 to continue funding his alcoholism. However, he did not know he had to pay taxes on that. He could not pay back taxes he owed and went to our office. He retained our firm and we were able to put him on currently non collectible status.

We had another client who owed taxes, but their only source of income was Social Security. He had owed taxes from selling his house. We were able to get them on currently non collectible
status.

There are pros and cons of being on currently non collectible status. We would be happy to have any client come in for a free consultation to get evaluated.