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Non-collectible Status – Irvine Tax Lawyer

Stopping Tax Wage Garnishment

In these tough economic times, you may be like many other Americans and unable to afford to pay all of your expenses, including your taxes. If you are facing this situation, you may be worried about how to explain this to the IRS and what penalties you may be subjected to.

Before you take matters into your own hands, it is important to know that you do have legal options and I, Scott Kauffman, am a lawyer with an advanced degree in tax law and 20 years of tax experience who is here to help you.

A Compassionate Approach

At my firm, the Tax Litigation Law Offices of Scott Kauffman, I understand that the position you are in is stressful and you may be embarrassed, but it is important to remember that there are many others facing the same problem and feeling the same way. I am here to help you and provide peace of mind, without any judgment. Contact me today to schedule a consultation at my Irvine, California office to explore your legal options. My goal is to resolve your problem by achieving the best result at the lowest cost.

Achieving Non-Collectible Status

In some cases, I can help you prove your inability to pay your tax debts and qualify to have the IRS assign you ‘non-collectible status’ or ‘Status 53’. This involves compiling certain financial information and submitting Form 433-F to the IRS, which will show that you are ‘currently not collectible’ according to their standards.

I will help you gather this required proof and fill-out the necessary paperwork, making sure all the information is accurate and clear. This includes proving that you currently have no disposable income and that seizing your assets to satisfy a debt would create an extreme hardship.

What Happens After You Are Deemed Currently Not Collectible

If the IRS does deem you to be currently not collectible, they will:

  • Stop all current wage garnishment actions against you
  • Stop other types of tax levies
  • Delay IRS collections they are currently pursuing
  • Send you an annual statement of what you owe, even though this is not a bill
  • Be unable to collect tax debts where the statute of limitations expires while you are in noncollectable status

This status does not release you from your tax debt. Penalties and interest will still accumulate, but you will not be responsible for payment of any of this until you are able to pay and are financially back on your feet. Usually this status lasts a year or two and after that the IRS will periodically ask for financial statements to assess if you are capable of starting to make payments.

I am familiar with how the IRS evaluates these requests and what information they consider to be adequate proof. As your attorney, I will explain and help you through every part of the process, including helping you negotiate an installment payment plan or offer in compromise once you are able to fulfill your tax debt obligations. Contact me today to schedule a consultation to discuss your situation and see if you qualify for non-collectible status.