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Get Tax Help with
IRS Uncollectable Status |
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The IRS will put a taxpayer in Uncollectable Status if the taxpayer can demonstrate to the IRS that they do not currently have the ability to pay back their tax debt.
While a taxpayer is in Uncollectable status
the IRS will not enforce any collection action
against them. This will effectively stop any
IRS levies or IRS seizures.
However, the tax debt will still exist in the IRS records. If the taxpayers financial situation improves, they will have to begin paying back the tax debt again, with interest.
Uncollectable Status does not permanently resolve a tax debt like an Offer in Compromise Settlement would, but it does take some of the pressure off when a taxpayer is not financially able to make payments on their debt.
If an individual is placed in uncollectable status, they can usually count on being left alone by the IRS for at least 12 months.
However, the IRS does have the right to re-open the taxpayer's file at any time and request information about the taxpayer's ability to start making payments again.
It is up to the taxpayer, or their representative, to prove to the IRS that they still qualify for uncollectable status when the IRS re-opens their file.
Washington Tax Services specializes is assisting small businesses and individuals with past due tax debts.
They provide specialized tax help for those
dealing with the collections branch of the
IRS. If you need help resolving an IRS or
State tax debt, please fill out the form on
the connecting
IRS uncollectable status page and a tax
professional will get back to you quickly.
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