Feb 21st, 2020
A revisit of currently not collectible status and the local standards that apply. Currently not collectible status is helpful for low income clients with more expenses than income. It might mean that the IRS halts Collection activity. If it continues long enough, the debt owed to the IRS may expire. When gathering information for your client to qualify, you will need to find out about assets, income and expenses. The local standards are expense limits regarding the amount of expenses a taxpayer may claim.
For further information, I also did episodes 8 and 9 for a more in-depth examination of currently not collectible status.