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noncollectible

Non-Collectible Status

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Not Collectible (NC) Status is a designation the IRS can apply to your account if they determine you are unable to pay your tax debt due to financial hardship. When your account is placed in NC status, the IRS temporarily halts all collection actions, including garnishments, levies, and liens. However, this status does not eliminate the debt—it simply pauses collection efforts for an indefinite period. If your financial situation improves, the IRS may review your status and make adjustments accordingly.

How to Qualify For Non-Collectible Status

Qualifying for NC Status requires you to provide detailed financial information that proves you cannot pay your tax debt. The IRS looks at several key factors when making this determination.

income

INCOME

Your current monthly income from all sources.

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LIVING EXPENSES

Necessary living expenses such as housing, utilities, food, transportation, and healthcare.

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ASSETS

Your liquid assets, including savings, vehicles, and real estate.

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DEPENDENTS

The number of dependents you support.

Key Points About Not Collectible Status

  1. Temporary Relief NC Status offers temporary relief from IRS collection efforts. The IRS will stop wage garnishments, bank levies, and asset seizures while your account remains in this status.
  2. Ongoing Tax Debt Being placed in NC Status doesn’t erase your debt. Interest and penalties continue to accumulate, and the IRS may revisit your case in the future to reassess your financial situation.
  3. Financial HardshipTo qualify for NC Status, you must demonstrate that paying your tax debt would cause you significant financial hardship. The IRS considers factors like your income, necessary living expenses, and any dependents when evaluating your case.
  4. Periodic Review The IRS typically reviews your NC Status every year to determine whether your financial situation has improved. If your situation changes, the IRS may resume collection efforts.

Settling with the IRS or State Authorities

Tax debt negotiation offers a potential lifeline if you owe money to the IRS or state taxing authorities. By understanding the available options, the negotiation process, and the benefits of professional assistance, you can take the necessary steps to resolve your tax liabilities and regain financial stability.

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The Ovation Tax Group Advantage

Applying for NC Status involves gathering substantial financial documentation and submitting a detailed application to the IRS. This can be a daunting process, and any mistake or oversight could lead to a rejection or delays in your case.

Here's how we can help you:

 

evalutation

FINANCIAL EVALUATION

We start by thoroughly reviewing your financial situation. This includes assessing your income, expenses, debts, and assets to determine if you truly qualify for NC Status. This step is crucial to make sure you’re presenting the strongest possible case to the IRS.

 

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PREPARING THE APPLICATION

The application for NC Status requires you to fill out forms and provide detailed financial documentation, including your Collection Information Statement (Form 433-A) or Form 433-B for businesses. We help gather all necessary paperwork, ensure everything is accurate, and submit the forms on your behalf.

communication

COMMUNICATING WITH THE IRS

Once your application is submitted, the IRS may contact you for additional information or clarification. Ovation Tax Group will handle all communication with the IRS, ensuring that you don’t miss any deadlines or requests for information. This can help avoid unnecessary delays or complications in your case.

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NEGOTIATING ON YOUR BEHALF

If there are any complications in your case or if the IRS questions your financial hardship, we negotiate on your behalf. We know how to present your financial situation in the best possible light, increasing your chances of getting approved for NC Status.

 

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ONGOING SUPPORT & LONG-TERM STRATEGY

Even after your account is placed in NC Status, we continue to monitor your case and ensure compliance with IRS guidelines. We can help you prepare for annual reviews or provide guidance if your financial situation changes and the IRS decides to revisit your case.

Why Work with Ovation Tax Group?

The IRS is strict about who qualifies for NC Status, and a small error could result in your application being rejected. Ovation Tax Group guides you through the entire process, ensuring that your application is complete, accurate, and as persuasive as possible.

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Free-Consultation

Complimentary Consultation with IRS Representation

 If you're struggling with significant tax debt but can’t afford to make payments due to financial hardship, Not Collectible (NC) Status may be an option for you. This status temporarily halts IRS collection efforts and gives you the breathing room you need to get back on your feet. Find out if you qualify.

No qualification is necessary. You can get tax debt help today.

Complimentary Tax Consultation 

Let Ovation Tax Group help you navigate the tricky world of tax debt and negotiate with the IRS on your behalf.