We were just put in "uncollectible" status by the IRS so does that apply to the state as well?

Attorney answers (3)

1. Licensed in IL

   

   Judy Goldstein

   Mokena Divorce / Separation Lawyer

   Contributor Level 20

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   Answered February 01, 2013 14:52. The state and the feds are totally different entities. The state can still come after your husband.

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2. Licensed in IL

   

   Andrew B GordonPro

   Lake Zurich Tax Lawyer

   Contributor Level 10

   

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   2

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   Answered February 01, 2013 15:54. The state department of revenue and the IRS are different bodies with their own unique rules and methods for collection. You may be "uncollectible" in the eyes of the IRS, but not the state. Hope this helps!

   Andrew B Gordon is a CPA and attorney licensed to practice law in Illinois. The information provided here is for... moreAndrew B Gordon is a CPA and attorney licensed to practice law in Illinois. The information provided here is for educational purposes only and is not intended as legal advice for a particular matter. This response does not create any attorney-client relationship with the author. For specific advice about your particular situation, please consult an attorney. less

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3. 

   M Kay Lewis

   Miami Tax Lawyer

   Contributor Level 7

   1

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   Answered February 04, 2013 08:27. The "uncollectable" status determined by the IRS is for federal taxes only. And it is only temporary. They can continue to follow-up and wait until they believe they can collect, and then you will hear from them again. As for the State taxes, they can still seek payment from you, and depending on your particular state statutes, they can seek criminal as well as civil penalties (fines) for failure to file state tax returns and pay state taxes.

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