Non-Collectible Status

Currently Non-Collectible (Status 53)

When some taxpayers are in extreme economical hardship, the IRS classifies them under “Currently Non-Collectible” status. Under this classification, the IRS ceases all collection actions, and the taxpayer is exempted from making payments on the delinquent taxes. This status can last from 18 months to two years, giving the taxpayer enough time to recover from financial adversity. However, the debt will not be dissolved, and the penalties and interest will continue to accumulate, but the taxpayer’s property and bank accounts are protected.

In this case, the same financial information is provided to IRS that is necessary for an IRS Offer-in-Compromise and the Installment Agreement. However the information in a “Non-Collectible” status claims that the taxpayer is facing poor financial situation and is not able to afford even a small monthly payment.

At the end of the un-collectible period, the IRS will re-evaluate the taxpayer’s financial position. They discuss all of the taxpayer’s current income and expenses. If the figures show that he/she has a positive cash flow and can afford to make monthly payments, then IRS will set up a monthly Installment Agreement. If, in case, the monthly expenses are equal to or greater than the monthly income, then IRS will still deemed the taxpayer’s status “uncollectible” and they will not be required to make any payments.

Contact us for more information or call us in our Doral, FL office at Call 305-500-9361 today!

Back to IRS Solutions

Sign up for our Email Newsletter


Follow - José F. PadróFriend José F. Padró on FacebookConnect with José F. Padró on LinkedInAdd Padró & Company, P.A. to your Google+ CircleSubscribe to the Padró & Company, P.A. Blog