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Level 2
posted Feb 17, 2023 6:06:28 AM

Tax code 530

I had a tax code placed on an amended return which is still processing. Tax code 530 is a code that says the balance on acct is not collectible.  However, they are taking the balance from this year's tax return. Not sure why this is. Can anyone explain

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1 Replies
Level 3
Feb 19, 2023 2:55:04 PM

If you're balance is in "currently not collectible" (CNC) status, it doesn't mean that the debt is eliminated.  It means that, at that point in time, the IRS doesn't believe that you can pay them and pay basic living expenses.  If circumstances change, the CNC status is lifted.  In the meantime, the IRS will always take any tax refunds owed to you each filing season until your balance is eliminated.  This is completely normal.  Your balance will also continue to accrue interest and penalties until it is either paid or the ten year statute of limitations is reached. 

 

https://www.taxpayeradvocate.irs.gov/get-help/paying-taxes/currently-not-collectible/#:~:text=There%20are%20times%20where%20you,Not%20Collectible%20(CNC)%20status