Note: This post if from April 2020, near the beginning of the Covid pandemic. We're leaving it up for now.
(With Just One Phone Call)
Hi, this is tax attorney Tony Ramos. I want to talk about IRS tax relief during Covid.
If you have been impacted by the Coronavirus situation. Such as having been laid off, and you don’t know if and when you're going to be able to work anytime soon….
You may have applied for unemployment benefits.
Or if you're a small business owner and your business is shut down right now, because you just can't work and generate income...
Possible Solution: Even if You Have No Money To Make IRS Payments!
There is something that you might be able to benefit from if you owe back taxes to the IRS. There is a resolution option available to you called “Currently Not Collectible” status. Just like it sounds; if you currently not able to make payments to the IRS because you're unemployed.
Or if you are temporarily laid off, or your work hours have been cut. If you have just enough to pay your rent and eat, then you can request Currently Not Collectible Status.
This status usually allows you to make zero payments for one to two years. The IRS will review your tax returns from now on to see if your financial condition has improved.
One Two-Page Form Needed Before Calling The IRS
To prepare for this, fill out an IRS Collection Information Statement Form.
It requests you to disclose your assets, your liabilities, and your income and expenses.
You can negotiate this status with one phone call to the IRS after filling out a form.
You don’t even have to send it in. The IRS will ask how you answered the questions on the form and record the information by phone.
You will need to show financial hardship. This means you cannot even meet basic living expenses, or have enough production of income.
You can also qualify if you are self-employed you need to spend more money on gas, tools, and other expenses just to earn a living.
Tax Lien May Be Filed By The IRS
The IRS will file a federal tax lien if you owe more than $10,000. This is a public notice that allows the IRS to get paid if you sell real estate. It is not a bank levy or wage garnishment. The 10-year collection statute will continue to run during this status.
Generally, the IRS only has 10 years to collect the tax debt.
This period continues to run during this Currently Not Collectible status.
So if you qualify, this is a great temporary solution for you.
If you are currently enrolled in an under installment agreement, you can stop that and turn it into Currently Not Collectible status.
If you owe over 15k to the IRS, I may be able to personally deal with the IRS for you.
Contact us via the buttons below to see if you qualify for a free Case Evaluation.
If you owe less than 15k to the IRS, it's best to talk to your tax return preparer or the Taxpayer Advocate (find your local advocate at IRS.gov).
We look forward to speaking with you soon.