In early September 2014 a Germantown Wisconsin couple hired M&M to resolve a personal income tax liability of approximately $35,000.
Most of M&M’s prospective clients are advised that a monthly Installment Agreement is the most common resolution outcome for most of our clients. However, if after a thorough review of financial documentation we determine that a different resolution such as Currently Not Collectible (CNC) status, an Offer in Compromise or other resolution fits better, we’ll present it as the best option.
IRS Currently Not Collectible Often Called Hardship Status or Uncollectible Status
In this case, CNC status fit our client’s needs great and we were able to successfully negotiate the resolution. Our Wisconsin client will not have to make payments toward their back tax debt for the foreseeable future as long as current tax obligations are met. The IRS may review their ability to pay if their financial condition changes. But for now, they can rest easy knowing that the IRS will not levy their bank accounts or garnish their wages while in CNC status.
Find out which resolution option is best to resolve your back taxes. Call 866-487-5624 to speak with an M&M Tax Expert today!
Click to see some of M&M’s successful Illinois tax resolutions.
Personal income tax liability cases are very confusing and intimidating to most of our clients. There can be a lot of information and IRS notices to wade through before one can begin to understand what needs to be done to resolve the issues. At M&M Financial, we specialize in pinpointing our client’s tax compliance issues, resolving and reducing their tax debts. For a Chicago man that found himself in the deep end of the IRS tax collection pool, M&M was just the lifeboat he needed. In November 2013 a proud resident of The Second City called upon M&M to help him resolve his $20,000 IRS income tax liability. After our initial investigation, M&M found that the IRS had prepared two year’s income tax returns on behalf of our client. His M&M Tax Team was able to obtain his wage and income transcripts for the missing years so that he could prepare the missing original tax returns and submit them to the IRS. From there we worked with our client to prepare IRS form 433-A and included it in our request for Currently Not Collectible status (CNC). Once our client’s original tax returns were accepted and processed by the IRS, our request for CNC status was approved. He won’t have to make payments to his IRS back tax debt until his Total Positive Income (TPI) increases. If you’re interested in whether or not you may qualify for IRS CNC status, contact M&M today. We’ll outline a strategy tailored specifically to resolve your tax liabilities. 866-487-5624 or 773-969-5825.
In September 2013, a business owner from Springfield, OH came to M&M with a Trust Fund liability of over $27,000 assessed to him personally from his business employment tax debt. M&M immediately secured a hold on our new client’s account through the IRS Automated Collections allowing us time to design and assemble our proposal for resolution. As part of our Currently Not Collectible (CNC) request for our client’s personal case, we successfully provided the IRS with copies of “turn down” letters from lenders t proving our client could not tap into the large amount of equity he had in his home. The result was another happy M&M client in CNC status.
If you’ve been personally assessed an IRS Civil Penalty resulting from the Trust Fund portion of your business employment tax debt, call M&M today. We specialize in resolving employment tax debts for businesses and the subsequent Trust Fund Recovery Penalty assessed to the business owners.
Contact M&M Financial Consulting, Inc. at 866-487-5624 or 773-969-5825 today! It’s a step in the right direction.
Currently Not Collectible (CNC) status is a little known, temporary resolution to IRS back tax debts that many of M&M Financial’s clients benefit from. Although CNC can be difficult to attain, it is a viable option for many struggling, delinquent taxpayers. If you are lucky enough to be granted this status by the IRS, you will not have to make payments toward your back taxes as long as you remain current and compliant with your ongoing tax responsibilities. The first step in reaching CNC status is being aware that it exists. Many tax professionals who “specialize” in tax resolution have never heard of it. Kind of like a chef who’s unfamiliar with tomatoes, I suppose.
In any event, an individual taxpayer may be placed into CNC status for several reasons, including hardship. The Internal Revenue Manual (IRM) 126.96.36.199 states that an individual account may be reported CNC if “collection of the liability would create a hardship for taxpayers by leaving them unable to meet necessary living expenses.” Recently a gentleman from New York needed back tax help and wisely chose M&M to resolve his liabilities. We went to work immediately gathering necessary information from our client and the IRS. M&M requested CNC status, citing hardship, and the IRS approved it this month. The IRS letter pictured shows our client owes 1040 income tax for six years, with a total IRS tax debt of approximately $120,000. He won’t have to make a payment toward his back tax debt for two years. Now that’s tax relief.
Gaining compliance and remaining current with tax responsibilities is imperative for both business and individual taxpayers seeking a resolution to their IRS tax debts, including CNC. Compliance also includes filing any and all missing tax returns. The IRS always wants to make sure no new liabilities will accrue before allowing a delinquent taxpayer into a resolution to satisfy back taxes.
It is much more difficult to secure CNC status for a delinquent business taxpayer. However, IRM 188.8.131.52 states that a corporate account may be reported CNC if the company “remains in business and is current but is unable to pay back taxes.” The M&M client resolution shown here was secured for a business client from Hilo, HI that has a 941 payroll tax liability totaling approximately $75,000. Although difficult to achieve, M&M’s has been very successful in reaching this resolution for its business clients that qualify.
There are other important points to remember about CNC status, such as the IRS’ standard procedure to file a tax lien on all accounts being reported CNC. Another major point to remember is that this IRS resolution is temporary, often lasting up to twenty-four months.
If you have more questions about Currently Not Collectible status and whether or not you may qualify, complete our contact form at http://mmfinancial.org/contact.html, or call us at 866-487-5624. We’ll outline your options and let you know how M&M’s Tax Resolution System can help you.
M&M Financial Consulting, Inc. We Solve Tax Problems!
Click to see more M&M tax resolutions in California.
The owner of a closed California paving company came to M&M recently with an all too familiar problem: His IRS $30,000 tax debt had spiraled out of control and it forced him to close his doors. Unfortunately he was still left with the tax debt personally. Luckily, this former sole proprietor responded positively to a recent M&M Tax Debt Specialist who offered him a no-risk, 100% refundable investigation and compliance check of his IRS individual or business accounts.
Through the compliance check, the Tax Experts obtained a complete picture of our client’s back tax debt through account transcripts. And because his business was closed, and his current personal income was less than his expenses, M&M obtained Currently Not Collectible (CNC) status for this grateful client.
CNC status is a fantastic alternative to an Installment Agreement for taxpayers who qualify. If the IRS accepts your request to be placed into CNC, you will not be required to make payments toward your tax liability for about 2 years.
Would you like to hear more? Do you think you’re a good candidate for CNC? Call us today. We can help.
Click to see more of M&M’s Tennessee Tax Debt Resolutions
A married couple from TN responded enthusiastically to a recent telephone call from M&M. It seemed that the two were facing both personal income tax and business Civil Penalty liabilities. In addition, the enormous stress caused by living in the cross hairs of the IRS resulted not only in the wife’s chronic stomach pain, but her pending gastrointestinal surgery. And to make matters worse, the Service was also garnishing the couple’s Social Security payments.
Knowing that these good people were in serious trouble on many levels, M&M’s Tax Experts went to work immediately. Our first order of business Continue reading →
A sole proprietor in Southern California got a lot more than he bargained for when he inherited his favorite aunts’ Tex Mex café. Though he was an experienced chef by trade, tax compliance was never his specialty. He’d managed to stay on the good side of the IRS for more than a decade, as his longtime girlfriend was also a tax preparer. Needless to say, his senorita kept him on the straight and narrow. But when their relationship went south (literally—she put their amoroso on permanent siesta and moved to Cabo San Lucas), he was left to his own devices with the IRS. Would he soon accrue a 1040 back tax debt and become an M&M client? Claro que si!
Our new client responded to a call a few months ago from an experienced and empathetic M&M representative, who explained in common sense terms how our Tax Experts could help him move past this financial dilemma. He told us that he had accrued his 1040 liability by not making timely Estimated Tax Payments, and by not filing his returns on time. His biggest problem, though, was his complete lack of funds. The key here is that M&M was able to prove to his IRS Revenue Officer through required IRS documentation and bank statements that he literally was broke.
After a period of strenuous negotiations, M&M was able to secure Currently Not Collectible status (CNC) for this deserving client, which means that from twelve to twenty-four months the IRS will not attempt to collect from him. At the end of that time period, the Service will reexamine his ability to pay. And there you have it, another final feliz courtesy of M&M.
Is your back tax bind similar to that of our So Cal Chef? Then don’t spoil your own recipe by going it alone. Call M&M. We listen. We understand. We’re The Experts.
Click here to find more examples of M&M’s tax debt resolutions in California.
M&M Financial helps taxpayers that owe the IRS and State resolve and reduce their tax debts. Call (866) 487-5624 for help.
The idea of running a business is a fantasy that many people have. Unfortunately, not enough business owners focus on the requirement of Federal and State tax compliance. So after a new childcare center owner from Kansas missed a number of Federal tax deposits (FTDs), and failed to file several IRS and State of Kansas returns, she had accrued $57,458 and $12,445 liabilities, respectively. As a sole proprietor and admittedly in over her head, she was rightfully concerned that she could soon lose her business and her home. After all, she once thought, if you’re a caring, creative person who loves kids, how hard could it be to run a childcare center?
With her economic future in jeopardy, the tax professionals at M&M reached out to this Kansan with a heart of gold in the nick of time. First, we determined which IRS and State returns our clients was missing, while negotiating reasonable deadlines for her to file those returns and resume the making of timely FTDs. The State soon offered to remove almost $2,000 in penalties in exchange for full payment of her liability. She gladly agreed. So with her State tax debt paid in full, M&M secured Currently Not Collectible status to cover her IRS back tax debt. This means that for two years the IRS will not attempt to collect her Federal liability, giving her plenty of time to reorganize her financial life. Are you like our Jayhawk? Have your good intentions but lack of tax expertise led to a tax liability that’s spiraling out of control? Talk it over with the experts at M&M. We can help.
Call (866) 487-5624 or 773-969-5825 today. M&M Financial helps struggling taxpayers in Illinois and around the country resolve their tax liability issues.
A building contractor from Illinois called M&M a few months ago, and described two great quandaries: He was broke from a recent divorce, and slow receivables from dwindling jobs he had caused him to miss a number of 1040 tax payments. The end result was a $17,294 personal IRS back tax liability. He told us the day he became an M&M client that he felt like the world was closing in on him. We knew, however, that with his participation in the tax resolution process, the Expert Negotiators at M&M could restore his peace of mind and end his IRS nightmare.
After a team meeting in which in which our new client’s liability was addressed, it was decided that he was an ideal candidate for Currently Not Collectible (CNC) status. (CNC means that the IRS will not pursue Enforced Collection Actions against a delinquent taxpayer for a set period of time, often two years.) Our client was granted this status after filing a number of missing returns, and proving through standard IRS documentation–with plenty of guidance and practical advice from M&M–that he had little or no money left over at the end of each month. And how does he feel now that he’s been granted twenty-four months reprieve from mandatory payments to the IRS? Well, the day we delivered the CNC news, he got silent on the phone for a moment then said, “That’s the first time I’ve exhaled in I don’t know when.” Could you use some breathing room? You might qualify for CNC status. Call M&M. Let’s talk it over.
Click here to find more examples of M&M’s tax debt resolution success in Illinois.
Call M&M Financial at (866) 487-5624 or 773-969-5825. We help struggling taxpayers in Chicago and across the country resolve and reduce their tax debts.
Several months ago, a chronically ill Chicago man came to the tax experts at M&M in desperate need of help. Not only was he burdened with a laundry list of health challenges, but the IRS has recently issued a levy against his already meager wages. Ironically, his $22,798 back tax liability was the result of our client’s illness and its massive corresponding hospital bills.
Though we never promise our client’s anything, we believed that this client was a prime candidate for the IRS’ Currently Not Collectible (CNC) program, which allows qualified taxpayers temporary amnesty from making payments toward their back tax debt. Not only were M&M’s professional tax negotiators able to secure CNC for this very deserving client, we also convinced the IRS to release his levy within days of hiring us, allowing him to cover his monthly food and utility bills and regain some peace of mind. Next, and though the IRS won’t attempt to collect from our client for about two years, M&M will soon present the Service with a Request for the Abatement of Penalties. We hope to compel the IRS to reduce or remove his penalties, as the primary cause for his liability was his illness. Stay tuned for an update!
Do you have a complicated back tax situation of your own? Call us. We listen. We help.
To find out how M&M’s Tax Resolution System can help you, contact us: