‘Temporarily Uncollectible’ Status Offers Hope to Delinquent Taxpayers Suffering Economic Stress

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Tax Resolution Services, Co. (TRS), urges consumers owing taxes to seek the help of a professional to negotiate this classification with the IRS.

Tax Resolution Services
You can’t simply file for this status, you must negotiate it with the IRS, and that is not something the average consumer should do on his or her own.

As of 2011, in the wake of the continued economic distress in the United States, over 46 million citizens have fallen below the official poverty line. “This correlates directly to the increase we’re seeing in people experiencing tax problems.” says Michael Rozbruch, founder and CEO of Tax Resolution Services, Co. (TRS), the nation’s leading experts in tax negotiation and mediation®. 

For consumers who have fallen below the poverty line and currently owe back or current taxes, the next step may seem unclear. Do they owe taxes for the current year? Do they still owe the back taxes? What about the interest and penalties that continue to accrue on the back tax liability? 

The IRS will pursue a delinquent taxpayer, even if they are now classified as below the poverty line. While consumers who do fall below the poverty line generally do not have to pay taxes for that tax year, they still may owe any back taxes outstanding from previous years. Interest and penalties also will continue to accrue.

Although this prognosis seems bleak, Rozbruch points out that there are solutions for all tax problems, including placing consumers in an installment agreement to pay off tax debt in increments over time, or settling with the IRS on a set, low lump sum payment through its Offer in Compromise program. Another option is to negotiate a “temporarily uncollectible” status with the IRS in which the IRS will grant consumers a reprieve from making payments on back taxes owed for a specified period.

“If you can honestly prove to the IRS through documentation that the collection of back taxes would cause an undue hardship, your case could be classified as ‘temporarily uncollectible,’ and the IRS will stop any enforcement proceedings against you,” Rozbruch explains. “You can’t simply file for this status, you must negotiate it with the IRS, and that is not something the average consumer should do on his or her own.” While the back tax reprieve is only temporary, qualified and experienced Certified Tax Resolution Specialists or tax attorneys can negotiate the best possible overall solution to permanently resolve a consumer’s tax liability issues.

Tax Resolution Services, Co.®, the nation’s leading experts in tax negotiation and mediation®, is dedicated to providing affordable solutions to businesses and individuals alike who find themselves in trouble with the IRS. Their work caters to consumers who owe over $20k in back taxes. TRS is a member of the Tax Problem Resolution Services Coalition (TPRSC), based out of Washington, D.C. For more information or to receive a FREE tax relief consultation, visit TaxResolution.com or call 888-851-5894.

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Debbie Edwards

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