Uncollectible Status

If a taxpayer is current with all tax payments and compliant with all filings but is temporarily unable to pay a tax liability, the IRS may classify the debt as uncollectible.  The debt remains – as do penalties and interest, which keep growing – but the IRS agrees to refrain from collection activities for a set period of time.  In addition to proving that it is current and compliant with payments and filings, a business must demonstrate that it remains viable and will address the liability in the future.  Please contact Larson Financial to get answers specific to your situation.