Currently Not Collectible (Status 53) - IRS Relief

Sometimes taxpayers’ financial situations worsen to the point that they cannot pay any portion of their taxes – even through an Offer in Compromise or Installment Agreement. Usually, this is due to a decrease in income or increase in necessary living expenses that causes the taxpayers to have no disposable income at the end of each month.

In cases like this, the IRS can change the status of a taxpayer’s account as “Currently Not Collectible” (CNC) and any collection activities, like tax liens or levies, are stopped. This is known as Status 53. IRS requirements state that they must receive an update every six months to see if the taxpayer’s financial situation is improved.

The IRS requires proof that you have no monthly disposable income or assets before they change your tax account status to CNC. If you have assets that they can seize, the IRS requires proof that seizing these assets will create a severe hardship for you. The proper forms and procedures must also be used as your case is being made.

The tax professionals at FSI Tax™ are experienced in Status 53 IRS requests and know how to move the proper paperwork through the IRS system. They are also dedicated to negotiating your tax account status with the IRS on your behalf so you can realize the tax relief you need for your peace of mind.

Contact FSI Tax™ and let our tax professionals assess your situation, explain your options and answer your questions.