Currently Not Collectible

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Currently Not Collectible (CNC) status is a formal IRS designation that temporarily suspends all collection activity against a taxpayer who demonstrates they have no ability to pay their tax debt without preventing themselves from meeting basic living expenses.

When the IRS places your account in CNC status, it essentially presses pause on collection — no levies, no garnishments, no seizures — while you are experiencing genuine financial hardship. It is not a permanent solution, and it does not eliminate your debt, but it can provide critical relief during a difficult period. Our tax preparation services are designed to help your business stay compliant and reduce your tax liabilities. We work with you to ensure that your taxes are filed accurately and in a timely manner.

You may qualify for CNC status if:

• Your monthly income does not exceed your allowable monthly expenses as determined by IRS Collection Financial Standards
• You have no significant assets that could be liquidated to pay the debt
• Paying anything toward your tax debt would prevent you from covering basic necessities such as housing, food, utilities, and transportation
• You are experiencing job loss, serious illness, disability, or other financial crisis

The IRS compares your income to its National and Local Standards — fixed expense allowances for housing, transportation, food, clothing, and other necessities. If your income barely covers these allowances, CNC status may be granted.

By phone:
Call the IRS at the number on your most recent notice and explain your financial hardship. The IRS may grant CNC status over the phone for straightforward cases.

By submitting financial information:
For more complex situations, you will need to complete Form 433-A (individuals) or Form 433-F (a shorter version used by the Automated Collection System) detailing your income, expenses, assets, and liabilities.

Through a tax professional:
An Enrolled Agent can gather your financial information, prepare the necessary forms, and request CNC status on your behalf — often achieving faster results.

• All enforced collection activity stops — no levies, no garnishments, no seizures
• You are not required to make any monthly payments
• The IRS's 10-year collection statute continues to run
• Any federal tax refunds will still be applied to your balance
• A federal tax lien may still be filed or remain in place
• The IRS will review your financial situation annually

CNC status is not permanent. The IRS reviews your account periodically — typically annually — by comparing your income to IRS thresholds. If your financial situation improves enough that you can make payments, the IRS will remove CNC status and resume collection.

You will typically receive a notice asking you to update your financial information when a review is scheduled.

 No. CNC status suspends collection but does not eliminate the debt. Interest and penalties continue to accrue on your balance while you are in CNC status. However because the 10-year collection statute continues to run, some taxpayers in long-term CNC status eventually reach the statute expiration date — at which point the debt becomes legally uncollectible. 

• Immediate relief from enforced collection
• No required monthly payments
• Time to stabilize your financial situation
• The collection statute continues running
• Buys time to explore other resolution options such as an Offer in Compromise

 CNC status is most appropriate for taxpayers experiencing genuine, documented financial hardship — not simply those who prefer not to pay. It is a serious designation that requires honest financial disclosure.

It may be the right fit if you are dealing with:

• Sudden job loss or reduced income
• Serious illness or disability
• A recent divorce or major life change that has severely impacted your finances
• Fixed income that barely covers basic living expenses

 Qualifying for CNC status requires accurate financial documentation and a thorough understanding of the IRS's expense standards. As an IRS Enrolled Agent, I can evaluate your situation, prepare your financial statements, and request CNC status on your behalf.