Currently Not Collectible Status: Temporary Help During Financial Hardship

Currently Not Collectible, or CNC, status is an IRS option that may temporarily pause collection activity when you cannot pay any of your tax debt because of financial hardship. It can give you breathing room, but it does not erase the debt.

If the IRS places your account in CNC status, it has determined that you cannot afford to pay at that time. Collection may be delayed until your financial condition improves.

What CNC Status Does

CNC status may temporarily stop or delay certain IRS collection actions. It is meant for taxpayers who cannot pay reasonable basic living expenses and have no realistic ability to make payments.

During CNC status, the IRS may periodically review your financial situation. If your income or assets improve enough to allow payment, the IRS may resume collection.

What It Can Do

• Temporarily delay collection activity.

• Provide relief when paying would leave you unable to meet basic living expenses.

• Give you time to improve your financial situation.

What It Cannot Do

• Erase or forgive the tax debt.

• Stop penalties and interest from continuing to accrue.

• Guarantee that collection will never resume.

Who May Qualify

You may qualify if paying the tax debt would leave you unable to meet necessary living expenses. The IRS considers your income, expenses, assets, and asset equity when deciding whether hardship exists.

CNC status is generally not appropriate if you have enough income or equity in assets to pay the debt without causing hardship.

What You Need to Provide

The IRS may ask you to complete a Collection Information Statement and provide proof of your financial situation. Depending on your circumstances, this may include Form 433-F, Form 433-A, or Form 433-B.

Be ready to explain your:

• Monthly income

• Essential living expenses

• Bank balances

• Vehicles, real estate, and other assets

• Debts and financial obligations

• Any documents that support your hardship

The IRS may request proof before approving a temporary delay.

How to Request CNC Status

Contact the IRS using the phone number on your bill or notice, or call 800-829-1040. Tell the representative that you are experiencing financial hardship and want to discuss a temporary delay of collection.

Before calling, gather recent pay stubs, bank statements, bills, and information about your assets. This can make it easier to explain why you cannot make a payment without creating hardship.

Important Limitations

CNC status is temporary relief, not a permanent solution. The debt remains, and penalties and interest generally continue to grow until the full balance is paid.

The IRS may also file a Notice of Federal Tax Lien to protect the government’s interest in your assets, even while collection is delayed.

Other Options to Consider

If you cannot pay the full balance but can afford a smaller monthly payment, an installment agreement may be a better option.

If paying in full or through installments is not realistic, an Offer in Compromise may be worth exploring. The IRS may accept an OIC when collection of the full amount is doubtful or would create an economic hardship.

Where to Get Help

If you have tried to resolve the issue directly with the IRS and still face a significant hardship, the Taxpayer Advocate Service may be able to help.

You may also qualify for help from a Low Income Taxpayer Clinic, which is independent from the IRS and may provide representation for free or at a low cost.