Delinquent Taxes

 

A taxpayer who has a delinquent tax obligation basically has five options to deal with the delinquent obligation: (Click on a Topic to Learn More)

 

  1. Pay the Full Balance of the Tax Due.
  2. Inform the IRS of Currently Non-Collectible Status.
  3. Installment Agreement.
  4. Offer-In-Compromise (“OIC”).
  5. Bankruptcy.

 

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If a taxpayer has little or no disposable income, the IRS may classify the taxpayer as “Currently Non-Collectible.”  During the period that a taxpayer is in “Currently Non-Collectible” status, the IRS does not attempt to collect the outstanding tax obligation through garnishments or levies