{"id":931,"date":"2021-10-19T20:31:11","date_gmt":"2021-10-19T20:31:11","guid":{"rendered":"https:\/\/sacramentotaxlawyers.com\/?page_id=931"},"modified":"2022-02-09T19:05:27","modified_gmt":"2022-02-09T19:05:27","slug":"currently-not-collectible","status":"publish","type":"page","link":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/","title":{"rendered":"Currently Not Collectible Status"},"content":{"rendered":"\n<p>Most taxpayers can work with the IRS to pay tax debt through an installment agreement or offer in compromise, but sometimes people don\u2019t have the money to afford those options.&nbsp; When these individuals can barely afford basic necessities and are unable to afford other tax relief options, they may gain tax relief by applying for financial hardship and requesting that their account be placed under &#8220;<a href=\"https:\/\/sacramentotaxlawyers.com\/irs\/currently-non-collectible-status\/\">currently not collectible<\/a>&#8221; (CNC) status.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\"><p>Are you suffering from financial hardship and can&#8217;t afford an offer in compromise?  Do you owe more than $10,000 to the IRS or California Franchise Tax Board?  Call <a href=\"https:\/\/sacramentotaxlawyers.com\/\">tax attorney Jin Kim<\/a> at <strong>(916) 299-9913<\/strong> for a free tax consultation and find out whether you qualify for currently not collectible status.<\/p><\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"financial-hardship\">Financial Hardship<\/h2>\n\n\n\n<p>When a taxpayer suffers from financial <a href=\"https:\/\/www.irs.gov\/irm\/part5\/irm_05-016-001r#idm140267952356496\" target=\"_blank\" rel=\"noreferrer noopener\">hardship<\/a>, the IRS or the California Franchise and Tax Board (FTB) may provide some reprieve from collections by placing the taxpayer under currently not collectible status. This means that the tax agency will temporarily suspend collection efforts for the delinquent tax. The suspension lasts one year with the IRS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"temporary-relief-from-irs-ftb-collections\">Temporary Relief From IRS &amp; FTB Collections<\/h2>\n\n\n\n<p>This relief from tax collection isn\u2019t permanent. However, the <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/temporarily-delay-the-collection-process\" target=\"_blank\" rel=\"noreferrer noopener\">temporary delay to collections<\/a> can be extended. The extension will depend primarily on the financial status of the taxpayer. If the agency finds that the taxpayer\u2019s finances have improved, they will resume collection. Evaluation periods will depend on whether the taxpayer owes delinquent taxes to the IRS or FTB. If the delinquent tax is owed to the IRS, the evaluation is done one year after being placed under not collectible status. If the tax is owed to the FTB, evaluation is done more regularly at three, six, and nine-month intervals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-it-s-hard-to-apply\">Why It&#8217;s Hard To Apply<\/h2>\n\n\n\n<p>Applying for financial hardship can be difficult, especially if you&#8217;re doing it on your own. The process isn\u2019t as straightforward as other tax relief options, perhaps because the IRS doesn\u2019t have an incentive to promote this tax relief option. Nevertheless, it remains a valid, and sometimes necessary, tax relief option. The important point is to prove to the IRS that you\u2019re suffering from <a href=\"https:\/\/taxcure.com\/hardship\/requirements-uncollectible\" target=\"_blank\" rel=\"noreferrer noopener\">financial hardship<\/a>. Documents showing your financial condition will be required by the agency before they approve your request. This means exposing all your assets, debts, and expenses to the agency concerned.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"when-are-hardship-requests-denied\">When Are Hardship Requests Denied?<\/h2>\n\n\n\n<p>Expenses are the most common reason why financial hardship requests are denied. The IRS uses average expenses across the country to determine whether a taxpayer\u2019s expenses are reasonable. This means that a taxpayer living in a state with high costs of living (such as California) can have a hard time getting the IRS to approve their request.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-apply-for-currently-not-collectible-status-with-the-irs-ftb\">How To Apply For Currently Not Collectible Status with the IRS &amp; FTB<\/h2>\n\n\n\n<p>If you owe the IRS, you will have to personally contact the IRS to apply for financial hardship relief. You can do this by phoning the IRS and asking to be placed under financial hardship status. The IRS may have you complete a <a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/f433a.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Collection Information Statement<\/a> and submit documentation to prove your expenses. Likewise, if you owe delinquent taxes to the FTB you will need to fill out a <a href=\"https:\/\/www.ftb.ca.gov\/forms\/misc\/3561C-PC.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Statement<\/a> and supply supporting documentation.<\/p>\n\n\n\n<p><strong>Conclusion<\/strong><\/p>\n\n\n\n<p>While <a href=\"https:\/\/www.taxpayeradvocate.irs.gov\/get-help\/paying-taxes\/currently-not-collectible\/\" target=\"_blank\" rel=\"noreferrer noopener\">currently not collectible status<\/a> may provide temporary relief, it doesn\u2019t mean that the tax will just go away. Penalties and interest will continue to accrue. If you can still make payments on the delinquent tax, then payment plans or an offer in compromise are better options. However, if you\u2019re really struggling to even make basic payments, then a tax lawyer should be able to advise you on how to move forward regarding your situation. Tax law can be confusing and difficult, especially if it involves applying for financial hardship relief. The good news, however, is that you don\u2019t have to do it alone.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most taxpayers can work with the IRS to pay tax debt through an installment agreement or offer in compromise, but sometimes people don\u2019t have the money to afford those options.&nbsp; When these individuals can barely afford basic necessities and are unable to afford other tax relief options, they may gain tax relief by applying for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":8,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Currently Not Collectible Status | How To Apply with the IRS &amp; FTB<\/title>\n<meta name=\"description\" content=\"Learn how to apply for currently not collectible status with the IRS &amp; FTB to gain temporary relief from tax collection.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Currently Not Collectible Status | How To Apply with the IRS &amp; FTB\" \/>\n<meta property=\"og:description\" content=\"Learn how to apply for currently not collectible status with the IRS &amp; FTB to gain temporary relief from tax collection.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/\" \/>\n<meta property=\"og:site_name\" content=\"Tax\" \/>\n<meta property=\"article:modified_time\" content=\"2022-02-09T19:05:27+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/\",\"url\":\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/\",\"name\":\"Currently Not Collectible Status | How To Apply with the IRS & FTB\",\"isPartOf\":{\"@id\":\"https:\/\/sacramentotaxlawyers.com\/#website\"},\"datePublished\":\"2021-10-19T20:31:11+00:00\",\"dateModified\":\"2022-02-09T19:05:27+00:00\",\"description\":\"Learn how to apply for currently not collectible status with the IRS & FTB to gain temporary relief from tax collection.\",\"breadcrumb\":{\"@id\":\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/sacramentotaxlawyers.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sacramento Tax Attorney\",\"item\":\"https:\/\/sacramentotaxlawyers.com\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Currently Not Collectible Status\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/sacramentotaxlawyers.com\/#website\",\"url\":\"https:\/\/sacramentotaxlawyers.com\/\",\"name\":\"Sacramento Tax Lawyers\",\"description\":\"Sacramento Tax Attorney Jin Kim\",\"publisher\":{\"@id\":\"https:\/\/sacramentotaxlawyers.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/sacramentotaxlawyers.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/sacramentotaxlawyers.com\/#organization\",\"name\":\"Jin Kim Tax Attorney\",\"url\":\"https:\/\/sacramentotaxlawyers.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/sacramentotaxlawyers.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/sacramentotaxlawyers.com\/wp-content\/uploads\/2021\/02\/Jin-Kim-Tax-Attorney-Sacramento-California-scaled-e1614205855346.jpg\",\"contentUrl\":\"https:\/\/sacramentotaxlawyers.com\/wp-content\/uploads\/2021\/02\/Jin-Kim-Tax-Attorney-Sacramento-California-scaled-e1614205855346.jpg\",\"width\":588,\"height\":608,\"caption\":\"Jin Kim Tax Attorney\"},\"image\":{\"@id\":\"https:\/\/sacramentotaxlawyers.com\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Currently Not Collectible Status | How To Apply with the IRS & FTB","description":"Learn how to apply for currently not collectible status with the IRS & FTB to gain temporary relief from tax collection.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/","og_locale":"en_US","og_type":"article","og_title":"Currently Not Collectible Status | How To Apply with the IRS & FTB","og_description":"Learn how to apply for currently not collectible status with the IRS & FTB to gain temporary relief from tax collection.","og_url":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/","og_site_name":"Tax","article_modified_time":"2022-02-09T19:05:27+00:00","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/","url":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/","name":"Currently Not Collectible Status | How To Apply with the IRS & FTB","isPartOf":{"@id":"https:\/\/sacramentotaxlawyers.com\/#website"},"datePublished":"2021-10-19T20:31:11+00:00","dateModified":"2022-02-09T19:05:27+00:00","description":"Learn how to apply for currently not collectible status with the IRS & FTB to gain temporary relief from tax collection.","breadcrumb":{"@id":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/sacramentotaxlawyers.com\/currently-not-collectible\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/sacramentotaxlawyers.com\/"},{"@type":"ListItem","position":2,"name":"Sacramento Tax Attorney","item":"https:\/\/sacramentotaxlawyers.com\/"},{"@type":"ListItem","position":3,"name":"Currently Not Collectible Status"}]},{"@type":"WebSite","@id":"https:\/\/sacramentotaxlawyers.com\/#website","url":"https:\/\/sacramentotaxlawyers.com\/","name":"Sacramento Tax Lawyers","description":"Sacramento Tax Attorney Jin Kim","publisher":{"@id":"https:\/\/sacramentotaxlawyers.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/sacramentotaxlawyers.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/sacramentotaxlawyers.com\/#organization","name":"Jin Kim Tax Attorney","url":"https:\/\/sacramentotaxlawyers.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/sacramentotaxlawyers.com\/#\/schema\/logo\/image\/","url":"https:\/\/sacramentotaxlawyers.com\/wp-content\/uploads\/2021\/02\/Jin-Kim-Tax-Attorney-Sacramento-California-scaled-e1614205855346.jpg","contentUrl":"https:\/\/sacramentotaxlawyers.com\/wp-content\/uploads\/2021\/02\/Jin-Kim-Tax-Attorney-Sacramento-California-scaled-e1614205855346.jpg","width":588,"height":608,"caption":"Jin Kim Tax Attorney"},"image":{"@id":"https:\/\/sacramentotaxlawyers.com\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/pages\/931"}],"collection":[{"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/comments?post=931"}],"version-history":[{"count":5,"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/pages\/931\/revisions"}],"predecessor-version":[{"id":1244,"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/pages\/931\/revisions\/1244"}],"up":[{"embeddable":true,"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/pages\/8"}],"wp:attachment":[{"href":"https:\/\/sacramentotaxlawyers.com\/wp-json\/wp\/v2\/media?parent=931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}