Get (Uncollectible) Status

The IRS agrees—you can’t get blood from a stone.  Therefore, if you are currently insolvent, the tax agency can check the “uncollectible” box by your name and set a future date to revisit your situation.

How Uncollectible Status Benefit You

  • Uncollectible status — insolvency — gets IRS agents off of your back for 18 – 24 months. The IRS will not waste manpower trying to collect from someone with no ability to pay.
  • The Statute of Limitations continues to run. This gets you closer to that magic date on which the IRS will have to write off the debt—forever!

But be warned— the IRS will not simply take your word that you can’t pay your tax debts. They’ll want to know what you own and what you owe. With those numbers in hand, the agency will employ a formula, the Reasonable Collection Potential (RCP), to determine your ability to pay.

Learn how the RCP formula works in your own situation— Call (352) 376-9401 or email Tax Rep Jim Payne, CPA, for help getting to Uncollectable Status.