What if I can’t pay my taxes? What happens when you can’t make any payments to the IRS at all?
If we can demonstrate to the IRS that you have no present ability to pay, then they’ll deem you temporarily uncollectable. That means that they’ll leave you alone for a period of time so you can get back on your feet, get a job or make more money, and then you can address your tax problems later.
Deemed uncollectable is just like an installment agreement except the parties exchange no money. You still owe them
money, penalties and interest still continue to accrue but they leave you alone for a period of time.
To stay in that status the IRS gives you one or two years, or if you file a tax return that shows income above a certain level
they’ll remove you from that status and resume the collection.
What we do when we get you are deemed uncollectable is we ask the IRS to share the parameters by which you’ve been deemed uncollectable so that we know. There’s nothing worse than the IRS suddenly surprising you in a year or two years after you’ve deemed uncollectable, so we learn what the IRS parameters are so that we can plan for when the IRS wakes up again, which will happen.
Call us at 877-4-IRS-LAW where you’ll talk to a real lawyer who will answer your questions right away.