As a tax professional, providing your clients with the best possible solutions is your top priority. One effective strategy to help clients facing financial hardships is securing an IRS CNC Tax Relief Status. This powerful tool can offer temporary relief by halting collection activities and providing the breathing room your clients need to get back on track. In this article, we’ll dive into the essentials of the CNC Tax Relief Status, exploring its benefits, eligibility criteria, and the steps required to successfully deploy it for your clients. Embrace the advantages of CNC Tax Relief Status and enhance your tax resolution practice today.
It’s all over the news—taxpayers are being taken by surprise and vocalizing their discontent over this year’s tax returns. Not only are some receiving refunds less than expected, but also some taxpayers are finding themselves needing to pay a higher tax bill than anticipated.
There are taxpayers who can write a check for the amount due and others that are able to make payment arrangements. But what happens when your client has no means to pay their tax debt?
Maybe they can get approved for a loan.
Maybe they can ask a family member or friend.
However, if they have no one able or willing to lend the money, the taxpayer might be backed against a wall. The IRS will soon begin collection actions so the matter must be dealt with quickly.
What will the taxpayer do if they don’t have the funds to pay their tax bill? Is there any other option to avoid the wrath of the IRS?
There is.
It may be in a taxpayer’s best interest to consider Currently Not Collectible status (CNC). This will avoid or stop IRS collection actions.
CNC status allows the taxpayer to remain current in tax compliance without having to stress about enforcement action on their past due tax bill. If a taxpayer has had a financial setback CNC allows them to recover.
Is CNC Status Only for Short Term? No. The IRS may designate an account as being in uncollectible status for either short or long term.
But it is not a permanent solution.
The IRS will send a statement to the taxpayer every year while their account is in Currently Not Collectible status. If there is no ability to pay any amount of tax debt, the IRS will keep postponing collection while under CNC.
What Qualifies Taxpayers for CNC Status?
If a taxpayer has no financial ability to pay any portion of their tax debt, the IRS may accept them into the Currently Not Collectible program. If they can pay even a portion, they will be disqualified.
How Does the CNC Program Work?
The guidelines of the CNC program call for the IRS to cease or withhold all collection activities until they see an improvement in the taxpayer’s financial condition. This includes cessation of levies and garnishments.
It is essential to seek professional tax debt help before selecting and applying for a tax debt resolution plan, as various guidelines and qualifying factors must be fulfilled.
Will you know how to serve your client if they come to you for assistance?
IRS Solutions Can Help You Provide CNC Tax Relief Status
Members Only Benefits
IRS Solutions Software gives you the confidence to provide services you may have been uncomfortable with in the past, including guiding your clients through the CNC process. Another benefit of membership is the training you get on our monthly case study calls.
By making sure your clients understand the importance of responding to IRS letters and new laws you’ll both avoid a big surprise when you least need it next tax season.
