- 8 -
proposed three alternatives to collection. We address each
seriatim.
Currently Not Collectible
Generally, currently not collectible (CNC) status may be
available when a taxpayer has no ability to make payments.
2 Administration, Internal Revenue Manual (CCH), sec. 5.16.1.1,
at 17,803 (2000). A taxpayer’s ability to make payments is
determined by calculating the excess of income over necessary
living expenses. 2 Administration, Internal Revenue Manual
(CCH), sec. 5.16.1.2.1, at 17,804 (2000). CNC status may be
available based on “hardship” if the levy action would prevent
the taxpayer from meeting necessary living expenses.
Petitioners submitted to the settlement officer certain
personal financial information in support of their request for
CNC status for the cumulative liability. The settlement officer
concluded that petitioners had the ability to make monthly
payments and that CNC status was not appropriate. Petitioners do
not challenge the settlement officer’s conclusion as to their
ability to make some payments toward their cumulative liability;
indeed, petitioners’ proposed offer in compromise, involving
payments of $180 per month, would belie any such claim.
Petitioners clearly had some ability to make payments toward
the cumulative liability. As a result, petitioners were not
eligible to have the cumulative liability classified as CNC. We
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011