When a taxpayer is incapable of meeting his or her federal tax obligations, he or she has a number of options, each of which can serve to delay, reduce or even expunge tax debt. Offers in compromise, installment agreements, and hardship determinations are just some of the ways in which tax debtors can effectively manage
reporting account as currently non collectible
IRS Non-Collectible Accounts – Basis for Reporting
IRS Non-Collectible Accounts Policy Statement 5-71 (aka P-5-71) grants the Internal Revenue Service (IRS) with the authority to report accounts currently not collectible. When an account is deemed currently not collectible, accounts can then be removed from collections altogether until the account is up for review where it is determined whether the currently not collectible
Currently Not Collectible Status
Among the remedies available to taxpayers in financial distress that are unable to meet their tax obligations is the ability to obtain Currently Not Collectible (CNC) status from the Internal Revenue Service (IRS). The IRS has authority to designate an account as CNC under Policy Statement 5-71, and may do so for a variety of