Friday, April 17, 2009

Currently Non Collectible

In the 1819 Supreme Court case of McCullock versus Maryland, the Court's ruling upheld the constitutionality of the creation of the Bank of the United States and denied to the states the power to tax such an institution because, as Justice John Marshall put it, "the power to tax is the power to destroy." The United States congress grants the IRS the power to tax. Therefore the IRS has considerable power to tax and subsequently the considerable power to destroy.

There is, however, a provision in the tax code to help those who are unable to pay the IRS. The program is called Currently Non Collectible or CNC. When a taxpayer owes the IRS and simply cannot pay then CNC is a definite option that can save the taxpayer from getting “destroyed.” As a tax professional I have witnessed situations where the IRS is levying individuals whose only source of income is social security. After conducting a financial analysis of the taxpayer’s situation it becomes blatantly obvious that the taxpayer simply does not have the ability to pay.

This is a perfect case for CNC. Many times hardworking, honest taxpayers, loyal to their country, struggle financially unnecessarily because they don’t realize they don’t have to pay what the IRS is demanding. This program does not make the tax debt go away. It simply frees the taxpayer from the destructive power of taxation. If you or anyone you know is struggling financially with a tax burden I would strongly suggest calling a tax professional to see if CNC is an option.

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