Temporarily Suspend All IRS Collection Actions
If you are facing a severe financial hardship and can’t afford to pay your tax debt, the IRS may grant you Currently Not Collectible (CNC) status. This designation temporarily suspends all collection actions, including levies and garnishments, until your financial situation improves. We will work to prove your hardship and secure this critical status for you.
What Is CNC Status?
Currently Not Collectible (CNC) status means the IRS agrees that you cannot pay your tax debt right now. They will stop active collection efforts and place your account in an inactive status. The tax debt and penalties will continue to accrue, but you will not be subject to aggressive collection actions. The IRS will review your financial situation annually to determine if you are still eligible for this status.
Who Qualifies for CNC Status?
You must demonstrate to the IRS that paying your tax debt would prevent you from meeting your basic living expenses. Our professionals will help you by:
Preparing a detailed financial statement showing your income and essential expenses.
Presenting a clear case to the IRS that proves your financial hardship.
Frequently Asked Questions About Currently Not Collectible Hardship Status
Currently Not Collectible (CNC Status 53) is an IRS hardship determination under IRM 5.16.1. It formally pauses all enforcement actions, including wage garnishments, bank levies, and property seizures, because your substantiated monthly living expenses equal or exceed your gross household income.
Yes. Unlike an Offer in Compromise or bankruptcy, placing an account into Currently Not Collectible status does NOT toll or suspend the 10-year Collection Statute Expiration Date (CSED) under IRC § 6502. If your financial hardship persists until the CSED expires, the tax debt is legally extinguished.
Taxpayers must verify their financial condition by completing Form 433-F or Form 433-A (Collection Information Statement), documenting proof of gross income, bank statements, asset equity, and allowable housing, medical, and transportation expenses.
Yes. While active collection enforcement is frozen, federal law allows the IRS to capture future federal and state tax refunds and apply them toward your back tax balance under statutory offset rules.