| The "currently not collectible" status is an Internal | | | | copy of Form 433 A and is only accepted by the IRS |
| Revenue Service (IRS) provision through which you | | | | under certain circumstances. |
| can make voluntary monthly payments towards your | | | | Completing the IRS Form 433 A is a crucial step in |
| tax liabilities. Simply put, if the IRS agrees that you do | | | | submitting a successful request for CNC status. Form |
| not have enough income to pay towards your tax | | | | 433 A, "Collection Information Statement for Wage |
| debts on a monthly basis, your accounts would be | | | | Earners and Self-Employed Individuals" is the form |
| placed into a currently not collectible (CNC) status. | | | | used to document your financial situation. The IRS uses |
| Under CNC status there is no required payment to be | | | | this form to determine your Reasonable Collection |
| made. Your tax accounts would remain in a CNC | | | | Potential (RCP) on your tax debts. If your RCP is |
| status as long as you cannot afford to make monthly | | | | greater than $0.00 then you will not likely qualify for |
| payments. The IRS does, from time to time, review the | | | | CNC status. Here is a brief description of the form: |
| status of your account and may conduct an audit of | | | | Form 433 A, Section 1: This section is used to enter |
| your financial information to determine if you are | | | | your personal information, like your name, address, |
| currently able to make monthly payments. If you are | | | | marital status, social security number, date of birth, |
| still unable to make monthly payments, the IRS will | | | | home phone number, work phone number, driver's |
| keep your accounts in the CNC status. The IRS will | | | | license details and spousal information. |
| send a statement reminding you of an outstanding tax | | | | Form 433 A, Section 2: This section is used to enter |
| balance. | | | | your employment information, like the name and |
| Prior to requesting CNC status, you should have filed | | | | address of your employer, your spouse's employer |
| your tax returns for all the years in which you were | | | | and address, contact details, duration of employment, |
| required to file. You must also be compliant with | | | | occupation type, pay period, and number of |
| current year estimated tax payments or tax | | | | exemptions claimed on Form W 4. |
| withholding and must agree to remain compliant in the | | | | Form 433 A, Section 3: This section is used to enter |
| future. | | | | other financial information, like details of current |
| Information Required for a CNC Status Request | | | | lawsuits, if any, bankruptcies, insurance policies, any |
| To request a currently not collectible status from the | | | | anticipated increase/decrease in income, and whether |
| IRS, you must demonstrate that you cannot make | | | | you have resided outside the United States in the last |
| monthly payments. What you need to do is to gather | | | | 10 years for a period of 6 months or more. |
| the following information for the IRS authorities: | | | | Form 433 A, Section 4: This section is used to enter |
| * Copies of your latest pay stubs | | | | personal assets, like bank accounts, money market |
| * Copies of your most recent statements showing | | | | accounts, government benefit cards and safe deposit |
| other means of income like Social Security benefits, | | | | boxes. You also need to include the full name and |
| pension income, spousal support, etc | | | | address of the financial institution or credit union where |
| * A copy of the most recent real estate tax bill for all | | | | your assets are deposited. Other information you are |
| the properties owned by you | | | | required to furnish are total cash in hand, 401 K, IRAs, |
| * Copies of your latest utility bills, like bills for electricity, | | | | stocks, bonds, mutual funds, etc. In addition, you need |
| gas, telephone, etc | | | | to reveal the amount of equity you hold, including credit |
| * A copy of your lease or mortgage statement | | | | cards, and any transfers of assets in the past 10 |
| showing your monthly rent or mortgage payments | | | | years. In the last portion of this section you must |
| * Copies of your latest credit card statements | | | | furnish monthly information for income and expenses. |
| * Copies of the most recent property tax bill for every | | | | Form 433 A, Section 5 and 6: You are required to |
| car you use | | | | complete these sections only if you are self-employed. |
| * Proof of any other assets that you may own, such | | | | The information required is the name of your business, |
| as stocks, bonds, etc | | | | EIN, type of business, number of employees, average |
| * Proof of any other monthly expenses you incur, such | | | | gross monthly payroll, frequency of tax deposits, total |
| as food and other necessities, daycare, court ordered | | | | equity, credit cards used, loans, business assets, etc. |
| payments, medical expenses, etc | | | | Once you have completed Form 433 A, you must |
| Form 433 A - A Brief | | | | follow the instructions on the form and attach all |
| After you have gathered the required documents you | | | | required documentation. If the required documentation |
| now must complete Form 433 A or 433 F for | | | | is not attached, your request for CNC status will likely |
| submittal to the IRS. Form 433 F is an abbreviated | | | | be denied. |