What is "Currently Not Collectible" Status?

Request and Manage Currently Not Collectible Status with a Skilled Tax Attorney, CPA, & IRS EA

If the IRS contacts you regarding serious tax problems you are facing, you should seek the advice of an assertive, experienced multifaceted tax attorney. As a Port Saint Lucie tax lawyer, CPA, & IRS EA, Attorney William T. Harmon has helped many clients address their issues directly to find a solution that works for them.

What Does Currently Not Collectible Mean?

If a taxpayer cannot make monthly installment agreement payments and does not qualify for an Offer in Compromise, the IRS may consider a Currently Non-Collectible (CNC) status.

This situation usually occurs when one finds it impossible to pay back taxes and living expenses simultaneously. 
The IRS considers these situations in which one cannot make an entire tax payment without falling behind on one's required living expenses, such as:

• Mortgage or rent
• Utility bills
• Food
• And other required living costs

The tax liability is not disputed, and it's just that; clearly, you cannot pay it along with covering your basic living needs; the IRS will deem your situation as "Currently Not Collectible," or CNC status.

If a taxpayer is placed in a CNC status, the IRS agrees that the taxpayer cannot make any payment on their back owed debt at this time. If a taxpayer is placed in the CNC status, the statute of limitations continues to run, and the IRS will not pursue collection activities. However, if the taxpayer's financial status does improve substantially, the IRS can remove the CNC status and request additional financial information.