Phoenix AZ IRS Back Tax Settlement: Currently Not Collectible Status
Phoenix AZ IRS Back Taxes: How Scott Allen EA of Tax Debt Advisors, Inc. Helped a Client Achieve Currently Not Collectible Status
When it comes to dealing with IRS back taxes, Phoenix, Arizona taxpayers are often overwhelmed with anxiety, confusion, and a barrage of misleading advertisements from out-of-state firms promising quick fixes and unrealistic resolutions. However, one local professional, Scott Allen EA of Tax Debt Advisors, Inc., has built a solid reputation in the Phoenix area for his integrity, effectiveness, and personalized approach to resolving IRS tax issues. A recent success story involving a client named Jamil showcases exactly how essential it is to hire a competent local representative when facing tax troubles.
Understanding IRS Back Taxes and Currently Not Collectible Status
IRS back taxes can accumulate quickly due to a variety of reasons such as unfiled tax returns, underreported income, or financial hardship. When a taxpayer is unable to pay their outstanding tax liability, the IRS has several collection mechanisms at their disposal, including levies, wage garnishments, and liens. However, in situations where the taxpayer’s financial condition makes it impossible to pay, the IRS may consider placing the account in a status called “Currently Not Collectible” (CNC).
This status does not eliminate the debt but temporarily halts all collection activity. The IRS reviews the taxpayer’s financial information to determine whether collecting the tax debt would create undue hardship. If approved, the taxpayer won’t be required to make payments until their financial situation improves.
Jamil’s Case: A Phoenix AZ Resident with IRS Back Taxes
Jamil, a Phoenix, Arizona resident, found himself in a difficult financial situation with substantial IRS back taxes owed for multiple tax years, including 2014, 2015, 2016, and 2019. The total amount due, including penalties and interest, exceeded $260,000. Feeling overwhelmed and unsure of where to turn, Jamil sought the help of a qualified tax professional and found Scott Allen EA of Tax Debt Advisors, Inc., a family-owned tax resolution firm serving the Phoenix area since 1977.
The Power of Local Representation: Scott Allen EA Steps In
Unlike the large national tax relief companies that flood the airwaves and internet with promises of “pennies on the dollar” settlements, Scott Allen EA provides face-to-face consultations and customized strategies based on the client’s actual financial situation. Jamil retained Scott Allen as his IRS Power of Attorney, giving him the authority to communicate directly with the IRS on his behalf and take the necessary steps to protect his rights and resolve his tax issues.
Scott began by conducting a thorough review of Jamil’s IRS transcripts and financial records. He discovered that Jamil’s income and assets were insufficient to make any meaningful payments towards his massive tax debt. Recognizing that a full payment plan or Offer in Compromise was not feasible, Scott prepared a detailed financial statement and submitted a request for Currently Not Collectible status to the IRS.
Case Closed: IRS Grants Currently Not Collectible Status
After reviewing the documentation provided by Scott Allen, the IRS agreed that Jamil was unable to pay his back taxes at this time without causing financial hardship. On April 2, 2025, the IRS issued an official notice confirming that Jamil’s case was now classified as “Case Closed – Currently Not Collectible.” This notice provided Jamil with the peace of mind that he would not be subjected to wage garnishments, bank levies, or other collection actions while in this protected status.
Although Jamil still technically owes the IRS over $262,000, the CNC status means he is not required to make any payments for the time being. Furthermore, the IRS will monitor his financial situation and may revisit the case in the future if his circumstances improve. In the meantime, Jamil is free from the constant fear of IRS enforcement and can focus on rebuilding his financial future.
Why Phoenix AZ Taxpayers Should Choose a Local Tax Professional
The importance of hiring a local expert like Scott Allen EA cannot be overstated. Many Phoenix AZ taxpayers fall victim to slick marketing campaigns from out-of-state firms that promise miraculous results with little to no effort. These companies often charge exorbitant fees upfront and deliver minimal results, leaving clients in worse financial shape than before.
Scott Allen EA offers something these firms cannot: personal service, local knowledge, and decades of experience dealing with the IRS in Arizona. When you hire Tax Debt Advisors, Inc. for Phoenix Arizona IRS back taxes, you’re not just getting a representative—you’re gaining a trusted advocate who understands your unique situation and will stand by your side throughout the entire process.
Personalized, Face-to-Face Service Makes the Difference
One of the hallmarks of Scott Allen EA’s approach is his commitment to meeting clients face-to-face. Unlike impersonal call centers, Scott takes the time to listen to his clients, understand their concerns, and develop a strategy tailored to their specific needs. This personalized attention ensures that no detail is overlooked and that each client receives the best possible outcome.
Jamil’s success story is just one example among many. Hundreds of Phoenix area taxpayers have turned to Scott Allen EA for help with IRS audits, unfiled tax returns, wage garnishments, and back tax debt settlements. His proven track record and dedication to client satisfaction make him a top choice for anyone facing IRS problems in Phoenix Arizona.
Moving Forward: Staying Compliant and Planning for the Future
With his tax debt now in Currently Not Collectible status, Jamil has a fresh start. However, Scott Allen EA made sure to emphasize the importance of staying compliant moving forward. This includes filing all future tax returns on time, avoiding additional debt, and making voluntary payments toward the existing balance if financially possible.
Clients like Jamil are also encouraged to check in regularly to review their status and discuss any changes in income or expenses that may affect their case. By maintaining an ongoing relationship with a trusted advisor like Scott, taxpayers can stay ahead of potential issues and avoid falling back into trouble with the IRS.
Local Help for IRS Back Taxes in Phoenix AZ
Dealing with IRS back taxes is a daunting task, but you don’t have to face it alone. As Jamil’s case demonstrates, the right professional representation can make all the difference. Scott Allen EA of Tax Debt Advisors, Inc. provided expert guidance, negotiated a favorable resolution, and gave his client the relief he desperately needed.
If you are a Phoenix AZ resident struggling with IRS back taxes, don’t risk your financial future by hiring an out-of-state company that doesn’t understand your situation. Contact Scott Allen EA today and experience the benefits of working with a local, trustworthy professional who gets results.