Currently Non Collectable Status ensures you not to be levied by the IRS or be scrutinized under the threatening letters or tax collection enforcement. You can be subject to this condition under the status 53, only if you are a taxpayer who cannot afford to pay taxes due to exceeding necessary expenditures in relation to the income being earned.
The IRS, however needs to be informed via a ‘collection information statement’ that proves that you, as a taxpayer have financial trouble and cannot afford to pay further taxes.
Tax Help MD helps all such taxpayers in preparing the financial statements with years of experience in this field. You no longer have to worry about the complications that could happen while filling the form with the required information.
When will you not be entitled to the Non Collectable Status?
For IRS to determine you as a regular taxpayer, here are the possibilities:
- A raise in your income
The IRS keeps regular checks on tax -payers finances. If they notice any changes or raises in the income being earned they are likely to tax you in the future. First, they will have to prove that you longer have financial trouble.
- The IRS follow-up checks:
From a period of 6-18month, the IRS makes follow-up visits and checks on your current uncollectable status. The IRS is known to mark such cases as future reviews. If they view any changes, they can change your uncollectable status to an ordinary tax-payer.