How to file non-collectible status??????????

[sunnygirl73]

What is the name of your state (only U.S. law)? Mo

Hi,
I just spoke with a major firm about filing non-collectible status with the IRS.

My husband lost his job last week and is the sole income provider. I do work very, very part time and take care of our 2 children. We were audited 3 years ago and put on a payment arrangement( the IRS immediately put a lein on us for this arrangement) which will expire in May and apparently, according to the IRS agent, go immediately into default even though we have been paying the arrangement in a timely manner.

The fee asked by this firm to do this was more than what we can afford right now. Can we do this ourselves? What are the pitfalls? How often do we have to file this?

I was told by the representative that we could do this indefinitely through her firm.

Am I being told the truth here?

Any advise would be appreciated.
Thanks in advance.

 

[LdiJ]

What is the name of your state (only U.S. law)? Mo

Hi,
I just spoke with a major firm about filing non-collectible status with the IRS.

My husband lost his job last week and is the sole income provider. I do work very, very part time and take care of our 2 children. We were audited 3 years ago and put on a payment arrangement( the IRS immediately put a lein on us for this arrangement) which will expire in May and apparently, according to the IRS agent, go immediately into default even though we have been paying the arrangement in a timely manner.

The fee asked by this firm to do this was more than what we can afford right now. Can we do this ourselves? What are the pitfalls? How often do we have to file this?

I was told by the representative that we could do this indefinitely through her firm.

Am I being told the truth here?

Any advise would be appreciated.
Thanks in advance.

If you have an installment agreement with the IRS and you are honoring the terms of the installment agreement, the IRS would not normally put you into default unless you actually defaulted.

While the IRS might deem someone non-collectible and might do so based on information communicated to them by a tax professional, I have never quite heard it put as "filing for non-collectible status".

National firms who advertise on TV that they can solve your IRS problems for "pennies on the dollar" generally charge a huge amount of money and do little to nothing for you.

Try giving the IRS a call at 1-800-829-1040 and explain your problem to them. I can almost bet that they will work with you.

 

[irsos]

What is the name of your state (only U.S. law)? Mo

Hi,
I just spoke with a major firm about filing non-collectible status with the IRS.

My husband lost his job last week and is the sole income provider. I do work very, very part time and take care of our 2 children. We were audited 3 years ago and put on a payment arrangement( the IRS immediately put a lein on us for this arrangement) which will expire in May and apparently, according to the IRS agent, go immediately into default even though we have been paying the arrangement in a timely manner.

The fee asked by this firm to do this was more than what we can afford right now. Can we do this ourselves? What are the pitfalls? How often do we have to file this?

I was told by the representative that we could do this indefinitely through her firm.

Am I being told the truth here?

Any advise would be appreciated.
Thanks in advance.

My practice specializes in helping people with IRS problems. The national firms that advertising on TV charge a lot more than it should take to deal with what are fairly simple problems. Quite often they do take your money and do little to nothing.They are just not geared for small engagments, they have too much overhead.

If you are in an installment agreement, it will not default unless you file a return and not pay what is owed, or stop making your payments. They will re-evaluate it from time to time though. However, if your household income has been dramatically reduced, it may be necessary for you to get the payments reduced or have the account put in an uncollectible status.

There is not a "uncollectible filing" per se. However it is necessary to either provide financial information over the phone or submit a collection information form to document your financial condition. You may also be required to submit proof of income and expenses.

You can handle this yourself but I do not really recommend it. I also would not recommend JKH or the like. They will charge two to four times what it should cost. For more information, go to What Is

 

[sunnygirl73]

Thank you

I appreciate the help and responses. I tried to file for status 53 today and got a very unresponsive agent. Is there a firm/ firms that anyone would feel safe recommending for someone with low income. My husband was unemployed for 4 weeks and we have no unemployment income yet.
So we would need this as inexpensive as humanly possible.
Thanks again.

 

[sunnygirl73]

thanks irsos

I just saw the website and inquired.
Thanks

 

[davew128]

Non-collectible status is something you need to demonstrate to the IRS based on providing documentation on Form 433 with attached backup to support the income and expenses. It's not something you are likely to get on your own for the first time just on your say so.

 

[tranquility]

We don't do OICs as a rule here and I'd accept irsos' opinion on these matters over mine. Our guidelines for the very few we do do are that the amount to be accepted in a Doubt of Collectibility looks to the reasonable collection potential. That amount is based on an expectation to collect all of a taxpayer's financial assets, plus 80 percent of the taxpayer's equity in cars, real estate, and other personal assets reduced by an allowance for housing, transportation, healthcare, food, and clothing. The IRS will also expect to collect an additional amount based on the taxpayer's income.