TAX SOLUTIONSCurrently Not Collectible
If you find yourself unable to pay both your tax bill and your regular bills, there is help available. You may qualify for a special IRS status called Currently Not Collectible, or CNC.
What is a CNC?
When your account is placed on CNC status, the IRS temporarily stops trying to collect money from you because your income doesn’t provide enough funds to pay your tax debt after covering your basic living expenses. The IRS also agrees not to levy your assets or garnish your wages. The result is that you don’t have to pay anything.
However, the IRS will keep a close eye on your account and you can lose your CNC status in certain cases, like if your income increases or you don’t file your tax returns.
It’s also important to remember that your debt hasn’t been erased, just postponed, so interest and penalties will continue to accrue and tax liens can still be filed against you.
How to Apply
Before you can be approved for CNC status, you have to apply with the IRS, which will look into your income, assets and expenses to see if you qualify. You’ll need to provide detailed financial records, such as bank statements and market values for all of your assets.
Applying for CNC status can be a difficult process. If you think you might be eligible, talk to a qualified tax professional who will help you decide whether going the CNC route is right for you.
Get Help
Schedule a free consultation with one of our tax associates and see how we can help you leave your debt behind.
Finding the right tax professional begins with asking the right questions.
Still deciding? Read our Founders Letter to learn more about what we do.
TaxQuotes is a specialized team of tax professionals committed to resolving IRS and state tax issues. As innovators in the tax industry with over 50 years of combined experience, we are experts at resolving a wide range of tax problems, including:
- Unpaid tax balances
- Unfiled tax returns
- Penalties and penalty relief issues
- Underreporter notices
- Business and payroll tax issues
- IRS and state tax issues
Our service costs vary based on the complexity of your situation. The first step is to get your IRS records, evaluate your situation, and provide a customized resolution plan according to your specific situation. The cost for this service varies but it’s an important first step in thoroughly understanding your unique situation and what options are available to you.
Once we have discussed your situation with you, we will propose one fee to resolve your entire situation. You have no obligation to purchase unless you accept our plan, and you can pay your fees over the time it takes us to complete your case. Your tax consultant can estimate how long your case will take and the fee structure for our services.
Resolution time for tax issues varies based on the complexity of the case. Straightforward matters take a few weeks, while intricate issues may take a year or more. To streamline the process, our team will file a power-of-attorney authorization with the IRS, allowing us to work directly on your behalf.
When you owe back taxes, the IRS offers several options other than full payment. These include payment plans, extensions to pay, and hardship programs, such as not-collectible status and a tax settlement option called an Offer in Compromise. We will evaluate each option with you and get you the best option based on your circumstances.
Absolutely. Our tax resolution experts review your notice, assess your situation and work with you on a plan to resolve your situation. Once you engage us for services, we get right to work with you and the IRS. Our tax resolution specialists stick with you from beginning to end.
Each person’s circumstances are different. Our goal is to get you the best outcome available based on your circumstances. If you owe back taxes, we will review your unique situation for any potential relief.
