Hi, this is tax attorney Tony Ramos.
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 get back 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 you are temporarily laid off, or your work hours have been cut and you have just enough to pay your rent and eat, then you can request Currently Not Collectible Status.
This status allows you to make zero payments for, usually, 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, you will fill out an IRS Form, a Collection Information Statement, which will request you to disclose your assets, your liabilities, and your income and expenses.
With one phone call to the IRS, after having filled out a form that you don’t even have to send in, you can negotiate this status. The IRS will ask you how you answered the questions on the form and record the information by phone.
You will need to show financial hardship, meaning that you cannot even meet basic living expenses, or have enough income for the production of income. Even if you are self-employed you need to spend more money on gas, on tools, and other expenses just to earn a living, then you can also qualify.
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. During the time you are in this status, the 10-year collection statute will continue to run. I will explain this in another video but, generally, the IRS only has 10 years to collect the tax debt. This period continues to run during this Currently Not Collectible status.
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 want more details on this, click on the link below and if you want me to personally handle this for you, go to tonyramoslaw.com/cnc and ask for your free IRS strategy session and we'll talk to you soon.