Being classified with a “currently not collectible” status means the IRS recognizes that a taxpayer has no ability to pay his tax liabilities. Evidence and supporting documentation would need to be presented to lead the IRS to this conclusion that a taxpayer is unable to even make monthly payments on his or her tax debt. Once the taxpayer is declared “currently not collectible,” the IRS is required to cease all collection activities, such as levies and garnishments. The IRS will continue to add interest and penalties to the amount due, but the IRS will not seek to collect from you as long as you are unable to make payments on your account. Additionally, the ten-year statute of limitations on tax debt collection continues to run while the taxpayer is in “currently not collectible” status, so if the IRS can’t collect within that period, the tax debts will expire.
If you are unable to pay your tax liabilities and would like to speak with an experienced Mississippi tax lawyer who specializes in dealing with the IRS and successfully obtaining tax relief for clients, please contact us at 601-321-1991.