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Hi, I'm Cindy N., a client at the Hawai'i Federal Tax Clinic on the island of O'ahu. These well-organized volunteer Federal tax litigators helped me resolve an IRS assessment for $200,000. I paid nothing! Their legal services were completely free and saved me $15,000 in litigation fees.
Call +1 (808) 202-2274
Sometimes taxpayers come across unforeseen financial events and it puts them in a situation where they are simply not able to pay the IRS the taxes that are owed. The IRS understands that this happens and has the power to declare an individual uncollectible if they can prove to the IRS that the collection of the tax would cause financial hardship. This is also called "currently non-collectable (CNC)" or status 53. Once the IRS approves, then this will temporarily stop collections. The IRS will follow up several months later to see if the financial situation has improved enough in order to start collections again. This status won’t solve your tax problem but will buy you more time to deal with it.
The IRS declares individuals uncollectible on a case by case basis. They evaluate individuals to see if the enforced collection of taxes from them would create economic hardship. In order to pursue this resolution, you may be required to submit some IRS forms and lots of personal financial information to the IRS outlining your financial situation.
When filing for the currently uncollectible status you will be required to fill out detailed IRS forms as well as provide detailed information about your financial situation. It is important to provide the IRS with enough information to prove that you do not have the means to pay taxes owed and it would be in their benefit to stop collections and allow you more time.
Please take note...
Each clinic determines whether prospective clients meet income guidelines and other criteria before agreeing to represent them or provide consultation services. Taxpayers seeking LITC services can view the Low Income Taxpayer Clinic Income Eligibility Guidelines.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them.
The Right to Be Informed
The Right to Quality Service
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’s Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Finality
The Right to Privacy
The Right to Confidentiality
The Right to Retain Representation
The Right to a Fair and Just Tax System
Please tap or click on the link below to be taken to the IRS website.
Taxpayer Bill of Rights | Internal Revenue Service (irs.gov)
Please keep in mind that being put in Uncollectible Status is a stop-gap measure. That means it's temporary. Eventually, you will have to pay the back taxes you owe or enter into an Offer in Compromise that would allow you to pay less than the original amount.
My name is Jeffrey G. Thompson E.A. USTCP.. I'm a I'm and IRS-Approved Enrolled Agents and United States Tax Court Practitioner aka Tax Litigation Counsel. I've been engaged in Federal Tax Practice for over 5 years as a federally authorized tax practitioner (FATP). I'm also authorized to practice before the U.S. Tax Court. I have removed liens, represented taxpayers at audits conducted by the IRS, and relieved taxpayers of garnishments, stopped asset seizures, and obtained release of bank attachments of personal and savings accounts. Please let me know how I can help?
If the IRS has begun to seize assets from you, either through your bank account, wage garnishment or physical seizure of assets our federally authorized tax practitioners can halt the IRS. An FATP can find the appropriate tax settlement method and file the proper paperwork to ensure the IRS does not seize any assets.
A tax lien will remain in place until you have paid off your taxes or until you have made some other agreement with the IRS. A FATP will be able to find the best wa.y for you to get back into good standing with the IRS to release a tax lien while not creating financial hardship for you.
Did you receive a notice of audit? If you have our Clinic represent you in your audit and make sure everything is presented in the correct way. Did you know audits go both ways, a FATP will review your tax filing to see if there is any other deductions you missed to potentially offset what the IRS finds. FATPs have many tactics in audits to ensure things go over smoothly.
Pictured above is Louis B. 'LB' Carpenter III CPA. He is a Member of the Bar U.S. Tax Court. and serves as Tax Litigation Counsel and Pro Bono Supervisor. He is a provider of pro bono legal services to the Hawai'i Federal Tax Clinic and Assistant Professor at the Tax Law Institute at Washington DC, and the Registered Coordinator, U.S. Tax Court Clinical, Student Practice and Calendar Call Program.
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