Currently Not Collectible (CNC) status is an IRS designation for taxpayers who cannot pay their tax debt due to financial hardship. When approved, the IRS temporarily suspends collection activities—such as wage garnishments or bank levies—until your financial situation improves, though interest and penalties may continue to accrue.

CNC status provides relief by:

• Pausing IRS collection efforts, giving you breathing room to stabilize finances.

• Preventing immediate actions like property liens or wage seizures.

• Allowing time to explore other resolution options, such as payment plans or settlements.

It’s not always a permanent solution depending on many factors, because the IRS will revisit your situation periodically to assess your ability to pay.

You can pursue CNC status in several ways:

 

• Do It Yourself: Submit a Collection Information Statement (Form 433-F for individuals or 433-B for businesses) to the IRS, proving your income and expenses leave no ability to pay. This requires detailed financial documentation, accurate calculations, and navigating IRS criteria—errors can lead to denial or delays.

• Work with the IRS Directly: Contact the IRS by phone or mail to request CNC status, providing financial data and answering questions. This demands precise preparation and understanding of IRS hardship standards, which can be challenging without guidance.

• • Hire a Tax Professional: A professional is the best way to secure CNC status. They analyze your finances, prepare and submit the necessary forms, and advocate with the IRS to demonstrate hardship. If your tax debt involves penalties or multiple years, a professional can also explore additional relief options to manage the situation.