Thursday, February 26, 2009

Qualifying For CNC

I had a conversation with a client the other day about whether he would qualify for a Currently Non Collectible when he was dissatissfied with the Offer In Compromise amount to settle his tax debt. Eventhough you get denied an offer amount does not mean you can't settle on another resolution with the IRS.
However, with this taxpayer he was told he would qualify for Currently Non Collectible (from a not so reputable company) and he will unfortunately will not due to having too much liquidable assets. The IRS will not agree to CNC, Status 53 of you have (in this taxpayer's case) remaining left over money from a settlement prevents him from qualifying for CNC.
When you have assets, that can be liquidated, CNC is impossible to get accepted. Monies, in the bank, IRA's,401 k's,equity in homes and vehicles can all cause you to not get into Currently Non Collectible. If the Internal Revenue Service forsees that you can borrow against your home, and liquidate assets, they will ask this of you before just deeming you as CNC and sustaining any collection activity for over a year.

Currently Non Collectible means that your expenses outway your income; a full financial disclosure of your income, expenses and assets will be thoroughly reviewed.

1 comment:

footbolito17 said...

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