Currently Not Collectible
Currently Not Collectible
Currently Not Collectible – Temporary Relief from IRS Collection Pressure
When paying your tax debt would cause financial hardship, the IRS may place your account in Currently Not Collectible (CNC) status. This halts collection actions and gives you breathing room to stabilize your finances.
At In-Sync Accounting & Consulting, we work to protect you from liens, levies, and garnishments by by clearly documenting your financial hardship to the IRS.
WHAT IS CNC STATUS?
Currently Not Collectible (CNC) status temporarily suspends IRS collection efforts when paying your tax debt would create financial hardship. While interest & penalties may continue to accrue, the IRS will pause active collection actions during this period.
How the IRS decides:
- Ability to Pay – Can you realistically pay your tax debt?
- Monthly Income & Expenses – Are you covering basic living costs?
- Assets & Equity – What resources do you have available?
If you qualify, you may be able to temporarily reduce your required monthly payment to $0 per month.
You may qualify for CNC if:
- You have little or no disposable income
- Paying the IRS would prevent you from covering basic living expenses
- You’re experiencing documented financial hardship
CNC status can provide immediate breathing room, but it’s important to understand how it fits into your overall tax resolution strategy.
A free consultation can help determine whether CNC is appropriate for your situation.
