If you currently owe the Internal Revenue Service (IRS) a substantial amount of money on back taxes, property, or another crucial item, you may worry about your future or fear the worse. If you do receive a letter from the IRS, don't discard or ignore it out of fear. You may have some options available to you that may help protect your future, including the option below.

File for a CNC

If you don't have the ability or funds to meet your tax obligations right away, you may consider filing for a CNC. A CNC (or currently not collectible) status allows you time to come up with a plan to pay off your debt. A CNC also prevents the IRS from pursuing you through collections or court.

Before you file a CNC, you must gather all of your paperwork, including your previous tax forms. You also want to have a copy of your current financial documents on hand, including your bank accounts, living expense accounts, and employment records. The tax company will generally use records such as these to determine whether or not you qualify for a CNC and how long.

Once you have everything in your hands, contact a tax attorney for further instructions.

Talk to a Tax Attorney

A tax attorney will help you complete and file the appropriate CNC request forms. An attorney may also use your paperwork to complete your forms. A lawyer may also need to calculate a few things before they file your forms with the IRS, including your current income and expected future income. If you receive government benefits, such as Supplemental Security Income (SSI), an attorney will need to submit this information as well. The IRS may use all of this information to access your current financial status, to determine your case, and to request payment of your debt in the future.

After a tax attorney files your forms, you may need to wait for the revenue service to examine your account. The amount of time you need to wait may depend on:

  • how much and how long you owe the IRS 
  • how many assets or property you own
  • how long it may take to go over your account

A lawyer may ask you to submit any changes in your financial status to them while you wait for a response from the IRS.

If you can't repay your tax obligations and need legal help, contact a tax attorney today.