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 fight to protect you from liens, levies, and garnishments by proving your financial hardship to the IRS.
WHAT IS CNC STATUS?
Currently Not Collectible status temporarily suspends IRS collection efforts when you cannot afford to pay. While interest and penalties may continue to accrue, the IRS will not actively pursue you.
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 lower your monthly payment to $0/month.
You may qualify if:
- You have little or no disposable income
- Paying would prevent you from covering necessary living expenses
- You are experiencing genuine financial hardship