Currently Not Collectible Status

What is Currently Not Collectible Status?

Currently Not Collectible (CNC) status is a temporary suspension of IRS collection activities when a taxpayer cannot pay their tax debt due to financial hardship. While in CNC status, the IRS will not take collection actions like levies or garnishments.

Eligibility Requirements

To qualify for CNC status, you must demonstrate that:

• Your necessary living expenses exceed your income
• You have no assets that can be liquidated to pay the tax debt
• Paying the tax debt would create a financial hardship

How to Apply

1. Complete Form 433-F (Collection Information Statement)
2. Provide documentation of your income and expenses
3. Submit your request to the IRS
4. Wait for the IRS to review your financial situation
5. If approved, your account will be placed in CNC status

Important Considerations

• CNC status is temporary and will be reviewed periodically
• Interest and penalties continue to accrue
• You must file all future tax returns on time
• The IRS may file a Notice of Federal Tax Lien
• Your refunds may be applied to your tax debt

Tips for Maintaining CNC Status

1. Keep your financial information current with the IRS
2. File all tax returns on time
3. Pay any current taxes when due
4. Notify the IRS of any significant changes in your financial situation
5. Consider other resolution options if your financial situation improves