Currently Not Collectible
Pause All IRS Collections When You Cannot Afford to Pay
Currently Not Collectible (CNC) status is one of the most powerful but least-known tools in tax relief. When the IRS determines that collecting your tax debt would leave you unable to meet basic living expenses, they are required to temporarily stop all collection activity. This means no levies, no garnishments, no seizures — giving you the breathing room you need while your financial situation stabilizes. Our attorneys help you qualify and maintain CNC status for as long as possible.
What Is Currently Not Collectible Status?
Currently Not Collectible (CNC) is an IRS hardship status that temporarily suspends all active collection efforts on a tax account. When a taxpayer's monthly allowable living expenses equal or exceed their monthly income, the IRS has no "ability to pay" and must place the account in hardship status. While in CNC status, the IRS will not levy bank accounts, garnish wages, or seize assets. However, interest and penalties continue to accrue, and the IRS will review the account periodically (usually every 1–2 years). CNC status is particularly powerful because it can hold accounts until the 10-year collection statute expires — effectively allowing the debt to expire without payment in some cases.
How It Works
Financial Analysis
We analyze your income, allowable monthly expenses (using IRS National and Local Standards), and assets to determine if you qualify for CNC status.
Documentation Preparation
We prepare your financial disclosure (Form 433-A or 433-F) with supporting documentation to demonstrate your inability to pay beyond necessary living expenses.
IRS Submission & Negotiation
We submit your hardship case to the IRS, handle all communications, and advocate for CNC placement — including addressing any pending levies or garnishments.
Collections Suspended
Once approved, IRS collection activity stops. The IRS sends a written confirmation and your account enters hardship status.
Ongoing Monitoring
The IRS reviews CNC accounts periodically. We monitor your account, update financial disclosures when required, and re-apply for CNC status if the IRS attempts to resume collections.
Who Should Consider This?
- ✓Monthly income is less than or equal to your allowable monthly living expenses
- ✓You have no liquid assets that could satisfy the debt without creating hardship
- ✓Your only assets are items necessary for health or basic living (home, essential vehicle)
- ✓You are receiving government assistance or living on fixed income
- ✓You have significant medical expenses or disabilities affecting your ability to pay
- ✓You are unemployed or your income is irregular or seasonal
Key Benefits
Immediate Halt to Collections
All IRS collection actions — levies, garnishments, seizures — stop immediately upon approval.
Statute of Limitations Runs
While in CNC, the 10-year collection statute continues to run. In some cases, debts expire before the IRS can ever collect.
Hardship Protection
The IRS cannot force you to pay what you genuinely cannot afford — CNC formalizes this protection.
Bridge to Better Options
CNC buys time to improve your financial situation, making you eligible for an OIC or installment agreement later.
Ready to Resolve Your Currently Not Collectible Issue?
Free consultation. No obligation. A licensed tax attorney will call you within 5 minutes.
Frequently Asked Questions
Will interest keep accruing while I am in CNC status?+
Yes. Interest and the failure-to-pay penalty continue to accrue on your balance while in CNC. However, the IRS cannot actively collect, and some taxpayers see their statute expire before the IRS can resume collection.
How long will CNC status last?+
CNC status lasts as long as your financial hardship continues. The IRS typically reviews accounts every 1–2 years. If your income increases substantially, the IRS may resume collection activity.
Can I own a home and still qualify for CNC?+
Yes. Owning a home does not disqualify you. The IRS considers equity in your home as an asset, but if your net income after allowable expenses still shows an inability to pay, you can still qualify.
What if the IRS issues a levy while I am applying for CNC?+
We move quickly to stop active levies as part of the CNC process. In many cases, we can get a levy released while the hardship application is pending.
Related Services
Offer in Compromise
A government-approved program that lets qualifying taxpayers settle their IRS debt for a fraction of the full amount.
Installment Agreement
Establish a formal monthly payment plan with the IRS to satisfy your tax debt over time and stop collection actions.
Wage Garnishments
IRS wage garnishment can take the majority of your take-home pay. We act fast to release garnishments and establish a permanent resolution that protects your income.