North Charleston, SC (PRWEB) March 27, 2008
Finding out you owe the IRS back taxes can detour your financial plans, especially when the amount you owe is significant. Fortunately, there are programs available to help. JK Harris, the nation's largest tax resolution company, was able to help William and Shirley Cox of Marietta, TX, by getting the IRS to place them in "Currently Non Collectible" status.
When William and Shirley Cox received notice that they owed $11,226 in back taxes, interest and penalties, they were caught off guard. Like many taxpayers, the Coxes had been unaware they should have reported withdrawals from their 401K on their tax forms in 2001, therefore, they had not paid tax on these withdrawals.
When the couple took the IRS notice to their CPA, she warned them she did not have much experience handling a situation like theirs. Then they saw a commercial for JK Harris and Company, LLC.
"My husband saw the ad on TV, got the phone number and we met with a consultant who told me what was going on," said Mrs. Cox. "He was very nice."
Their JK Harris consultant determined that they were likely candidates for a "Currently Not Collectible" status with the IRS. In order to qualify with the IRS for a CNC, a client must meet the IRS' determination regarding hardship. A hardship can be financial, medical, or caused by unpredictable events such as natural disaster or unemployment.
The Coxes fell under the latter. They had both been employed as truck drivers, but had retired, leaving the couple with just their Social Security income. Due to their limited income and no foreseeable future income, the IRS found that the Coxes did indeed qualify to be put into "Currently Not Collectible" or CNC status.
While under CNC status, taxpayers do not have to make any payments on their delinquent tax liability due to a lack of adequate income. Being declared as Currently Not Collectible allows them to continue to provide for themselves and their family.
The IRS will continually monitor clients under a CNC and it can be changed back to "collectible" status if the taxpayer's income increases enough. Penalties and interest will continue to accrue during the period the taxpayer remains under the CNC.
The Coxes were grateful to have the weight of debt lifted from their shoulders.
"I would like to thank you all for the help with the IRS. I couldn't ask for better service," said Mrs. Cox. "Again, thank you!"
About JK Harris:
JK Harris & Company, LLC, (http://www.jkharris.com) based in North Charleston, S.C., is the nation's largest tax resolution firm and has served over 200,000 customers since its founding in 1997 by John K. Harris. JK Harris consultants are available to meet with consumers in over 425 locations nationwide by appointment only. The company also provides services for student loan debt, fee-based financial planning, tax return preparation, and audit representation.