Stop IRS Collections
The IRS will put a taxpayer in Uncollectable Status if the taxpayer can demonstrate to the IRS that they do not currently have the ability to pay back their tax debt. While a taxpayer is in Uncollectable status the IRS will not enforce any collection action against them. This will effectively stop any IRS levies or IRS siezures. However, the tax debt will still exist in the IRS records. If the taxpayers financial situation improves, they will have to begin paying back the tax debt again, with interest. Uncollectable Status does not permanently resolve a tax debt like an Offer in Compromise Settlement would, but it does take some of the pressure off when a taxpayer is not financially able to make payments on their debt.
If an individual is placed in uncollectable status, they can usually count on being left alone by the IRS for at least 12 months. However, the IRS does have the right to re-open the taxpayer's file at any time and request information about the taxpayer's ability to start making payments again. It is up to the taxpayer, or their representative, to prove to the IRS that they still qualify for uncollectable status when the IRS re-opens their file.
Washington Tax Services specializes is assisting small businesses and individuals with past due tax debts. We provide specialized tax help to clients who are dealing with the collections branch of the IRS. If you need help resolving an IRS or State tax debt, please fill out the form on this page or contact one of our tax professionals today at: (888) 282-4697.
