How can you stop the IRS from trying to collect taxes from you?
How can you stop the IRS from trying to collect taxes from you? Attorney Charlie Price explains CNC or "currently not collectable".
Attorney Tom Olsen: I’d like to introduce you to attorney Charlie Price from the Price Law Firm Orlando. He specializes in tax resolution and debt problems. Charlie is also the author of five books devoted to helping consumers including his newest book I can’t pay the IRS! Now What?: The Ultimate Insider’s Guide to Solving Your Tax Problems - Once and For All! Again, by attorney Charlie Price. A couple took money out of their IRA in order to pay cash for a new home and now they’ve gotten a letter from the IRS saying that they owe $80,000 to the IRS for taking money out of IRA. What can they do?
Attorney Charlie Price: You know Tom, that’s actually much more common than you think. With tax day coming up people often don’t file their taxes because they don’t think they can pay stuff back and they came into an installment agreement with the IRS because they don’t have enough income to do that.
So, something that is one of my most powerful techniques, something called the currently not collectible status, we call it CNC. I call it the black hole, which means once you get somebody into CNC status the IRS leaves them alone, they don’t ever attempt to collect again, as long as their status doesn’t change.
So, for instance, I have clients just like that who owed probably in excess of $80,000. They had a free and clear house, they had social security income, which IRS can garnish, and they had another $50,000 in their retirement accounts which IRS can take, but I was able to convince the revenue officer that they needed those things to survive and that they didn’t have the income, so they couldn’t even garnish them.
Ultimately, they agreed to put them in currently not collectible status, which means that they’ll sit there until the statute runs on collection and then everything goes away, but for the next 10 years they’re not going to do anything to them. So, currently not collecting very strong.
Attorney Tom Olsen: Once you put someone into the CNC status, is the IRS going to check in every few years and see if their circumstances have changed?
Attorney Charlie Price: They will check based on their filed tax returns and if they get a giant refund they’re going to take it from them. If their income goes up, they get a job or something happens they will go back and review that but otherwise, like for people who are now retired, chances are it’s not going to happen.
Attorney Tom Olsen: All right. Hey Charlie, when you come on the show before you’ve offered our listeners a free copy of your book I can’t pay the IRS. Is that still available to them?
Attorney Charlie Price: Absolutely, and only for people on this show. Two ways to get it; one is go to www.theirsbook.com or downloading our app IRS Attorney, available for Android and Apple.
Attorney Tom Olsen: Hey Charlie, how can they reach you at your office next week?
Attorney Charlie Price: 407-834-0090, it’s www.cpricelawfirm.com.