Employers are required to withhold Social Security, Medicare, and income taxes from wages paid to employees. The withholdings are credited to the employee’s Social Security, Medicare, and income tax accounts. If these taxes are not paid over to the IRS …
If You Cannot Pay Anything Currently
If you can’t pay anything currently, we should try to get your case on currently not collectible status.
The IRS may be willing to put your case in “currently not collectible” or CNC status if:
- You have no assets subject to levy (e.g., substantial equity in a house, cash in a bank account, etc.) or
- If an IRS levy would prevent you from being able to meet your necessary living expenses (it would create an economic hardship).
Here is what you need to know about the IRS’s CNC status:
- You will not have to make payments to the IRS during the time the account remains in CNC status.
- You will not have to worry about any future IRS levies on your property, accounts, or wages during the time the account remains in CNC status.
- The IRS may or may not revisit your account for collection potential every few years. The balance will be erased as the IRS’s time to collect expires (the time is generally 10 years from the time the tax return was filed).
Please note that penalties and interest continue to accrue while the case is in CNC status, but at a lower rate.
Here is what we can do to help:
- We can get your IRS records and analyze them.
- We can work with you to analyze and document your financial circumstances.
- We can prepare and submit the CNC request to the IRS and negotiate with the IRS for you to help ensure your case is put on CNC status.
The Cost: Our fees for this work vary based on the time it takes us to do the work in your case. The typical fee is $500 to $1,000, with most cases being closer to $500. We let clients pay this over a six month period. We will email a quote to you based on your circumstances.
Please note that if we do the analysis and determine that you do not qualify for CNC status or you do not want to proceed with the OIC after we get started, our fee is only $500. And yes, we accept credit card payments.
What We Need: I will email you a contract and clear instructions as to what we need to help with this. The tax attorney who will be working your case will be listed in the email and they can answer any questions you may have.