Marge paid $50 per month toward a previous tax balance for years, even though her only sources of income were SSI, food stamps, and housing assistance. She thought she had finally made the last payment when the IRS sent her a new bill, including penalties and interest, which brought the balance back to $700. Marge was upset and afraid.
Marge reached out to Legal Aid’s Low Income Taxpayer Clinic. Her LITC attorney requested currently not collectible status for the remaining balance, and the IRS granted it immediately. The statute of limitations for collecting the balance was set to expire within six months, so no additional action was necessary to resolve the debt.
Marge was grateful for the help she received. She can use the extra $50 to meet her monthly living expenses.