If you’re overwhelmed by IRS debt but can’t afford to pay anything right now, there’s a little-known status that could provide immediate relief—Currently Not Collectible (CNC).
At Jablonsky Tax Relief, we help taxpayers facing serious financial hardship pause aggressive IRS collection efforts and buy time to stabilize their finances. Read on to learn what CNC is, who qualifies, and how we can help.
What Is Currently Not Collectible Status?
Currently Not Collectible status is an IRS designation that temporarily halts all collection activity against a taxpayer. Once you are placed in CNC:
- The IRS stops enforced collection actions.
- Wage garnishments and bank levies are lifted.
- You won’t be required to make payments on your tax debt for now.
It’s important to understand that CNC doesn’t erase your debt. Interest and penalties will continue to accrue. However, it can provide breathing room until your financial situation improves or until the statute of limitations on collection (typically 10 years from assessment) expires.
Who Might Qualify for CNC?
The IRS grants CNC status when it determines that collecting from you would cause significant financial hardship. You may qualify if:
- Your necessary monthly living expenses equal or exceed your income.
- You’re unemployed, underemployed, or on a fixed income (e.g., Social Security).
- You’re dealing with a serious illness or disability.
- You have minimal assets and no ability to borrow or liquidate.
To be approved, you must submit detailed financial documentation—including income, expenses, bank statements, and possibly asset disclosures. The IRS uses this information to determine whether you truly can’t pay anything.
Example: How CNC Status Helped a Real Taxpayer
Mark, a laid-off warehouse worker, owed $32,000 to the IRS but had no current income aside from unemployment benefits. With a mortgage, car payments, and a family to support, there was simply nothing left to send to the IRS.
Working with a tax resolution expert Mark:
- Gathered his financial records and documented his hardship.
- Completed IRS Form 433-A to demonstrate his inability to pay.
- Submitted his request with our help and avoided further collection action.
The IRS placed Mark in Currently Not Collectible status. Collections stopped, and he was able to focus on finding new employment without the fear of bank levies or wage garnishments.
How We Can Help
Applying for CNC status involves more than just filling out forms—it requires a strategic approach and thorough financial analysis. At Jablonsky Tax Relief, we:
- Assess your eligibility and potential benefits of CNC.
- Prepare and submit the necessary documentation on your behalf.
- Communicate directly with the IRS to secure the status.
- Monitor your account for future changes or compliance needs.
CNC status is reviewed periodically, so it’s critical to stay compliant with future tax filings to maintain your protection.
Don’t Suffer in Silence
If IRS debt is hanging over your head but you genuinely can’t afford to pay, Currently Not Collectible status may be the right option. Let us help you take the first step toward financial relief.
Contact Jablonsky Tax Relief today for a free consultation. We’ll determine if you qualify and create a personalized plan to get the IRS off your back—for good.
