Currently Not Collectible (CNC)

Currently Not Collectible (CNC) is a status that temporarily halts IRS collection activities when a taxpayer cannot pay their tax debt due to financial hardship. This status provides breathing room while you work to improve your financial situation.

Qualifying for CNC Status

To qualify for CNC status, you must demonstrate that:

• Paying the tax debt would prevent you from meeting basic living expenses
• Your financial situation makes collection unlikely
• You have little to no disposable income after necessary expenses

Required Documentation

The IRS requires detailed financial information:

• Form 433-A (Collection Information Statement for Wage Earners)
• Form 433-F (Collection Information Statement) for simpler cases
• Bank statements
• Pay stubs
• Expense documentation

What CNC Status Provides

Collection Activity Stops

• No wage garnishments
• No bank levies
• No asset seizures
• No collection calls

Time to Recover

CNC status gives you time to improve your financial situation without IRS pressure

Important Limitations

Interest and Penalties Continue

Your tax debt continues to grow with interest and penalties

Temporary Status

The IRS reviews CNC cases periodically and may resume collection if your situation improves

Collection Statute Still Runs

The 10-year collection statute continues, which can work in your favor

Professional Assistance

Qualifying for CNC status requires careful preparation of financial statements and documentation. Professional tax help can ensure your application is properly prepared and maximize your chances of approval.

When CNC Ends

CNC status may end when:

• Your financial situation improves
• You receive a significant increase in income
• The collection statute expires
• You request to establish a payment plan

Alternative Options

Before pursuing CNC, consider other tax relief options:

• Offer in compromise
• Installment agreement
• Penalty abatement
• Innocent spouse relief

If you're struggling financially and need to verify tax relief options, CNC status might provide the temporary relief you need.