Tax Solutions

Currently Not Collectible Status

This solution offers help for taxpayers struggling with tax debt. Currently, Not Collectible status can help you delay paying your tax debt until your financial situation improves.

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“If you are unable to pay your necessarily living expenses and the minimum IRS payment plan, you may qualify for a financial hardship status called Currently Non-Collectible.”

- Alyssa Maloof Whatley

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Pro Tip:

Compliance is key.

The IRS will be monitoring your account for any indication that your CNC status can be withdrawn. It’s important to stay in compliance with the other obligations of your installment agreement while you’re unable to make payments– like filing your returns on time.

What Is CNC?

If your IRS account is placed in Currently Not Collectible status, the IRS temporarily halts its efforts to collect your outstanding tax debt. During this period of CNC status, the IRS also agrees not to levy your bank account or garnish your wages.

CNC status doesn’t erase your tax debt, it only postpones it. While you’re in CNC, penalties and interest still accrue on your account. Because tax liens are a delayed collection effort, your property can be subject to a tax lien while you’re in CNC.

The Law Firm of Alyssa Whatley team

How Do I Get CNC Status?

It can be a complicated process that requires submitting detailed financial information to the IRS. You’ll need to submit records showing the value of your assets as well as your income and expenses.

If you think you may qualify for CNC status, it’s important to speak to a tax professional to determine how CNC might fit into your overall tax debt strategy.