Currently not collectable status
If your Collection Statute Expiration Date (CSED) passes while in CNC status, your tax debt may be permanently written off. To qualify for CNC, you must file any past due tax returns, provide financial documentation, and make timely estimated tax payments. If your situation doesn’t improve, other resolution options like an Offer in Compromise or Partial Payment Installment Agreement may be available.
Our team can help you determine your eligibility, assist with gathering documentation, and provide ongoing support to monitor your case. Contact us today to speak with a specialist and enroll in our CNC monitoring program—so you can stay informed and protected as your financial situation evolves.
currently not collectable status (CNC)
If you're unable to pay your IRS tax liability due to financial hardship, the IRS may place your account in Currently Not Collectible (CNC) status. This is typically for situations like economic hardship, unemployment, bankruptcy, poor health, or old age. CNC is a temporary solution that stops most collection actions, but the IRS may resume collection efforts if your financial situation improves.
It is important to note that the CNC status is a temporary relief
While in CNC status, the IRS will not levy your assets, but penalties and interest will continue to accrue. They may also apply any refunds to your tax debt and file a Notice of Federal Tax Lien (NFTL), which can affect your credit. The IRS will periodically review your financial situation to ensure you still qualify for CNC status.