What Does Non-Collectible Status Mean?
IRS gives this status to those in need of help with tax debt, whose household living expense is greater than their present income. Status-53 occurs when a taxpayer cannot afford to pay to the IRS.
How to Request Non-Collectible Status?
You need to inform your financial status to the IRS. You need to submit the financial statement and give the details of your expenses. You need to prove that once all expenses are fulfilled you are left with no extra money to pay the tax debt.
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Procedure by IRS
IRS reviews the financial status of all taxpayers who have achieved Currently Non-Collectible status on a periodic basis from 6 to 18 months to find out if their financial situation has improved. If the financial situation of the taxpayer is better than before, then IRS executes an Installment Agreement.
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