Uncollectible Status

The firm represents clients in all types of collection matters before the IRS, the Franchise Tax Board, the California State Board of Equalization and the Employment Development Department and assists clients in finding solutions to their tax collection problems. One possible solution that is available to taxpayers who owe money to the IRS and/or California tax agencies is having the tax liability being placed in uncollectible status, sometimes referred to as “hardship” status by California tax agencies. This is a temporary solution which stops collection action, allowing the taxpayer to avoid intrusive and disruptive collection action. The tax agency in question typically requires detailed financial disclosures before placing an account in uncollectible status and will generally review the account after a certain period of time to determine whether the taxpayer’s financial status has changed. The attorneys in our office assist individuals, shareholders, partners, members, corporations, LLC’s partnerships, estates, and others in determining whether they are eligible to have an account placed in uncollectible status and in pursuing that goal if they are eligible for this alternative.