Non-Collectible Status Arrangements

If you are struggling to pay your taxes, you may be eligible for non-collectible status arrangements from the IRS. These arrangements can provide you with temporary relief from tax collections while you regain your financial footing.

There are two main types of non-collectible status arrangements: currently not collectible (CNC) status and partial payment installment agreements (PPIA).

Currently Not Collectible (CNC) Status

CNC status is a temporary status that allows you to stop making tax payments for a period of time. To qualify for CNC status, you must show that you cannot afford to pay your taxes due to your current financial circumstances. The IRS will consider your income, expenses, and assets when determining your eligibility for CNC status.

Partial Payment Installment Agreements (PPIA)

PPIA is a type of installment agreement that allows you to make smaller payments on your tax debt over a longer period of time. To qualify for PPIA, you must show that you can afford to make monthly payments of at least $25. The IRS will also consider your income, expenses, and assets when determining your eligibility for PPIA.

If you are eligible for non-collectible status arrangements, you can apply for these arrangements by filing Form 433-F with the IRS. This form will ask you to provide information about your income, expenses, and assets.

Once you have filed Form 433-F, the IRS will review your application and make a decision about whether to grant you non-collectible status. If your application is approved, the IRS will stop collection activities on your account for the duration of your non-collectible status.

Benefits of Non-Collectible Status Arrangements

There are several benefits to obtaining non-collectible status arrangements from the IRS. These benefits include:

• Temporary relief from tax collections: Non-collectible status arrangements can provide you with temporary relief from tax collections, which can give you time to get your finances in order.
• Reduced stress and anxiety: Non-collectible status arrangements can help to reduce stress and anxiety about your tax debt.
• Improved credit score: Non-collectible status arrangements can help to improve your credit score, which can make it easier to borrow money in the future.

If you are struggling to pay your taxes, you should contact a tax professional to discuss your options. A tax professional can help you determine if you are eligible for non-collectible status arrangements and can assist you with the application process.