Do You Qualify for Temporarily Uncollectible Status with the IRS?
U.S. taxpayers are facing significant challenges in this miserable economy. According to the Bureau of Labor Statistics, National Unemployment Rate currently stands at 9.1% and over 46 million citizens have now fallen below the official poverty line.
So what are taxpayers living below the poverty line who currently owe back or current taxes supposed to do? Do they owe taxes for the current year? Do they still owe the back taxes? What about the interest and penalties that continue to accrue on the back tax liability? What if they cannot simply cannot afford to pay the IRS?
The bad news is the IRS will pursue a delinquent taxpayer, even if they are now classified as below the poverty line. While consumers who do fall below the poverty line generally do not have to pay taxes for that tax year, they still may owe any back taxes outstanding from previous years. Interest and penalties also will continue to accrue.
The good news is there are options (believe it or not). One option is to negotiate a “temporarily uncollectible” status with the IRS in which the IRS will grant consumers a reprieve from making payments on back taxes owed for a specified period.
If you can honestly prove to the IRS through documentation that the collection of back taxes would cause an undue hardship, your case could be classified as ‘temporarily uncollectible,’ and the IRS will stop any enforcement proceedings against you. It is important to note that you can’t simply file for this status, you must negotiate it with the IRS, and that is not something the average consumer should do on his or her own.
If you do not qualify for this status, there are other solutions for all tax problems including placing consumers in an installment agreement to pay off tax debt in increments over time, or settling with the IRS on a set, low lump sum payment through its Offer in Compromise program.
While the back tax reprieve is only temporary, qualified and experienced Certified Tax Resolution Specialists or tax attorneys can negotiate the best possible overall solution to permanently resolve a consumer’s tax liability issues.
For more information or to receive a FREE tax relief consultation, visit TaxResolution.com or call 888-851-5894.
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Tags: Back Taxes, Economy, IRS, Poverty, tax attorney, ‘Temporarily Uncollectible’ Status
