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.