What does non collectible status mean with the IRS?
The Internal Revenue Service (IRS) is the United States government agency responsible for tax collection and enforcement. For individuals and businesses that owe taxes, the IRS has various methods to collect the debt. However, in certain situations, the IRS may determine that collecting the debt is not feasible, and will assign the debt a non-collectible status. Understanding what this status means and how it affects individuals and businesses is crucial for those facing tax debt issues.
Non-collectible status is a designation given by the IRS when it determines that collecting a tax debt is not possible due to financial hardship or other reasons. This status is not a permanent solution, but rather a temporary measure to provide relief to taxpayers who are unable to pay their tax debt. In this article, we will explore the meaning of non-collectible status, the factors that lead to its assignment, and the potential implications for individuals and businesses.
