Video instructions and help with filling out and completing Fill Form 843 Hardship

Instructions and Help about Fill Form 843 Hardship

Hi I'm Lawrence Lawler national director of the American Society of tax problem solvers this series has to do with solving common tax problems we're going to discuss the currently non collectible status of a taxpayer the IRS in some instances will determine that a taxpayer simply cannot afford to pay what they owe and they will put them into currently non collectible status commonly referred to as CNC within the IRS the IRS will look at the taxpayers financial records and determine that he doesn't have the wherewithal to pay for the necessities of life and therefore will suspend any collection action against him temporarily they intend to review those things every year to see if the taxpayers financial position has changed a recommendation to taxpayers who are in currently not collectible status might be to investigate doing an offer and compromise or if they can afford to make some kind of a small payment to start to get rid of the problem they could look at installment arrangement often though with a currently not collectible status we find the offering compromise is probably the best solution to their problem because it will add finality to the financial problem that they have with the IRS because it resolves the issue and gets it over with whereas currently not collectible doesn't and in fact in the currently not collectible status the penalties and interest continue to accrue all the time they're in that status if their financial position doesn't change that may not mean anything because they can't pay the text at the level ale right now if it grows they aren't going to be able to pay that either but if their financial position improves it has cost them a lot of money to be in that status so considering an offering compromise adds finality to it it's it ends the problem they make an offer the IRS accepts it and now they are current with all their taxes and they're out of the currently non collectible status one other option of course is to file for bankruptcy and see if the taxes can be discharged in bankruptcy