Currently not collectible status overview
If you are experiencing financial hardship due to unemployment or other unforeseen circumstances and you are currently unable to pay any amount toward your unpaid balance, you may qualify for currently not collectible status.
qualifying for currently not collectible status
To qualify, you must have filed all required tax returns and be current with your estimated tax payments or federal tax withholdings to qualify for CNC status.
If you do not have equity in assets or income remaining each month after paying all of your necessary expenses, you may be able to qualify for CNC status.
Practical considerations for CNC status
- While you are in CNC status, penalties and interest will continue to accrue
- If your unpaid balance is over $10,000 the IRS will file a federal tax lien
- The IRS will apply future refunds toward the unpaid balance until it is paid in full or the period the IRS has to collect expires
- You must file federal tax returns and pay the corresponding taxes by the due date
- The IRS will review your ability to pay annually. If your financial situation improves, you may be expected to make payments.
Our 3-step currently not collectible status process
We will ensure you are compliant with the tax law. We will file all required tax returns and verify you paid the current year's withholding and estimated tax payments.
Next, we will analyze your financial information and, based on the IRS collection financial standards, determine whether you are likely to qualify for CNC status.
We will provide the IRS with the required financial information and request that you be placed in CNC status.