The last thing we can do for Denver tax client who is unable to set up a payment plan with the IRS and unable to qualify for an offer in compromise, is to make them uncollectible.

In some ways, having an uncollectible status with the IRS is good because you don't have to pay them any money and they are not trying to collect from you. The bad thing about having an uncollectible status with the IRS is that they've probably already filed a lien on you, you don't know when the next time the IRS will decide if you're still uncollectible, and becoming uncollectible with the IRS is a decision that must come from them, not us here at Bloch Rothman in Denver, Colorado.

Once a Denver taxpayer is labeled as uncollectible, ACS or the collection branch of the IRS, will check things out to determine whether the particular Denver taxpayer is now collectible. Once that has happened, the taxpayer now needs to enter into an installment agreement wiht the IRS or into an offer in compromise to protect him or herself from collection action.

Generally, being uncollectible is a temporary condition. The exception to this is a Denver tax client who has filed all their tax returns, and is able to stay uncollectible during the 10 years for the statute of limitations for the IRS to collect taxes.

Bloch, Rothman and Associates Ltd., your Denver accountant, has helped Denver taxpayers with IRS collection problems for over two decades and we can help you too! Please give us a call for a free Denver tax consultation. (303) 321.7160