Currently Not Collectible (CNC) Status Help

Currently Not Collectible (CNC) status may temporarily stop IRS collection activity when a taxpayer cannot afford to pay due to financial hardship. We help evaluate and request CNC status when appropriate.

What is IRS Currently Not Collectible Status?

Currently Not Collectible (CNC) is an IRS collection status that may temporarily suspend active collection actions when a taxpayer demonstrates financial hardship and cannot make payments without being unable to meet necessary living expenses.

CNC status does not eliminate the tax debt. Interest and penalties may continue to accrue, and the IRS may review your financial situation periodically to determine whether CNC should remain in place.

Who May Qualify for CNC Status?

CNC status may be appropriate if:

  • You cannot afford monthly payments after necessary living expenses

  • You are facing IRS collection actions such as levies or garnishment

  • Your income is limited or unstable due to hardship

  • Your financial situation requires time to stabilize before pursuing another resolution option

  • You can provide documentation of income, expenses, and assets

Filing compliance is often required, and eligibility depends on a full financial review.

What CNC Status Can (and Cannot) Do

CNC status may help you:

  • Temporarily stop active IRS collection actions in appropriate cases

  • Avoid unaffordable payment plans while you are in hardship

  • Create time to regain stability and become compliant

CNC status does not:

  • Forgive or eliminate the tax debt

  • Stop interest and penalties from accruing

  • Prevent future IRS reviews of your financial situation

Our CNC Request Process

  1. Case Review & Pre-Qualification
    We review your situation to determine whether CNC status may be appropriate based on hardship indicators.

  2. Compliance & IRS Investigation
    We review IRS transcripts, balances, and filing history and identify any missing tax returns that may need to be filed.

  3. Financial Analysis & Documentation
    We analyze income, assets, and allowable living expenses and prepare the supporting documentation needed for an IRS hardship determination.

  4. Submission & IRS Communication
    We submit the request and supporting information and communicate with the IRS throughout the review process.

Common Issues That Affect CNC Eligibility

  • Missing or unfiled tax returns

  • Unreported income or incomplete documentation

  • Expenses that exceed IRS allowable standards without support

  • Equity in assets that increases ability to pay

  • Changes in income that trigger an IRS review

Currently Not Collectible FAQs

Does CNC status stop IRS wage garnishment or bank levies?
In many cases, CNC may suspend active collection actions, but timing and IRS procedures matter. A review is required to determine the best approach.

Will the IRS forgive my debt if I’m in CNC status?
No. CNC does not eliminate the debt. Interest and penalties may continue, and the IRS may review your situation later.

Can I qualify for CNC if I have unfiled tax returns?
Usually, missing tax returns must be filed before the IRS will grant CNC status.

Do you help taxpayers nationwide?
Yes. We are licensed to represent taxpayers before the IRS and assist clients in all 50 states.

Request a free CNC Status Case Review

Complete our pre qualification form to determine whether CNC status or another IRS tax resolution option may be available. Not all cases qualify.

Free Case Review