Total Relief (Status 53 or Non-Collectible Status):

The Internal Revenue Service and many state taxing authorities offer a little-known resolution plan that can temporarily, or permanently, offer you or your business total relief from the back taxes owed. Although nobody wants to pay more taxes than they have to, and nobody enjoys paying penalties, interest and collection costs on balances owing, total relief is not granted liberally by the Federal and State governments.

To qualify for Total Relief (often called Status 53, as Internal Revenue Service Revenue Officers file for this collection status by submitting Form 53 for approval with their managers), a taxpayer must prove a general state of insolvency, and verify that the cost of collecting on the tax debts would ultimately be greater than the amount they could potentially collect. In simple terms, the government would get little or no return on their investments of time and money in your case. For those taxpayers with few or no tangible assets (real estate, vehicles, investments, etc.), and little monthly income, Status 53 may work. Many times, taxpayers will also qualify when they have experienced drastic, life-changing events such as:

• Serious Illness/Injury requiring intensive medical attention and expense.
• Foreclosure of a home and eviction from the premises.
• Loss of employment.
• Temporary or Permanent Disability.
• The closure of a business and liquidation of it’s assets.
• Retirement.
• Local or Regional disasters, and other extenuating circumstances.

It should be noted that many of these circumstances may also be utilized as a means for either reducing your liability (through a Penalty Abatement) or proposing a final settlement (such as an Offer in Compromise), if you do not qualify for permanent placement in Status 53. If you feel that you may meet the criteria for either a temporary or indefinite period of total relief, contact Aspen Accounting & Financial Services’ specialists to learn more about how to request consideration. Our firm has successfully obtained a currently non-collectible status for taxpayers with liabilities ranging from a few thousand dollars to well over $1,000,000, and can help you to realize the best resolution possible to your tax balances owing.