Life has always been a struggle for Betty, working hard to make ends meet. She tried to keep working through some major health issues, but finally had to cash in the remainder of her relatively small retirement plan just to pay some bills. She did not have taxes withheld and also faced penalties for early withdrawal from her account.
Shortly after she cashed out her retirement, Betty had to quit working due to her health problems.
She filed her taxes but couldn’t pay the amount she owed, and the interest and penalties continued to grow into a debt while she put it off for another year. Betty was getting letters from the IRS demanding payment, and the stress was making her medical problems and her life even worse. She barely had enough money to live on, now that she was only receiving Social Security, let alone start to pay back taxes.
Looking for some help with her situation, Betty turned to the Steidl and Steinberg Tax Services, where she learned during a free consultation that she was a good candidate at this time for Currently Uncollectable status. Betty had to provide documentation to Steidl and Steinberg regarding her income, expenses, and assets, but the attorney at Steidl and Steinberg believed this was Betty’s best option.
While being placed in Currently Uncollectable status does not wipe out her tax obligation, and the interest and penalties continue, the IRS halts its collection process. Betty will be subject to periodic reviews of her Currently Uncollectable status by the IRS but, since she is unable to work and her income is not likely to change, she will be able to maintain her modest standard of living and not have to worry about her tax bills.