If you’re struggling to cover both your everyday expenses and your tax balance, there may be relief available. You could qualify for a special IRS designation known as Currently Not Collectible (CNC).
What Is CNC Status?
When your account is approved for CNC status, the IRS pauses all collection efforts because your income isn’t enough to pay your tax debt after meeting essential living costs. During this time, the IRS also agrees not to garnish your wages or seize your assets — meaning you won’t be required to make any payments.
However, the IRS continues to monitor your financial situation, and your CNC status can be revoked if your income rises or if you fail to file future tax returns.
It’s important to note that this relief is temporary — your debt isn’t forgiven, and interest and penalties will continue to build up. The IRS can also still file a tax lien to secure its claim
How to Apply
To be considered for CNC status, you must submit a request to the IRS and provide detailed financial documentation.
This includes proof of your income, living expenses, bank statements, and the fair market value of your assets.
Because applying can be complicated, it’s wise to work with an experienced tax professional who can determine whether CNC status is the right approach for your situation and help prepare your case.
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Book a free consultation with one of our tax professionals to start resolving your past-due taxes today.
