Currently Non-Collectible
What is Currently Non-Collectible Status?
CNC status means that the IRS has determined that you cannot afford to pay your tax debt and basic living expenses simultaneously. Once granted, the IRS temporarily suspends collection efforts, giving you relief from garnishments, levies, and other collection actions. However, interest and penalties continue to accrue on the unpaid balance.
CNC is a form of temporary relief, and the IRS will periodically review your financial situation to determine if you are able to resume payments in the future.
Who Qualifies for CNC Status?
You may qualify for CNC status if paying your tax debt would leave you unable to cover basic living expenses, such as housing, utilities, food, and healthcare.
Examples of qualifying situations include:
You are living on a fixed income (e.g., Social Security, disability benefits) and cannot make payments.
You have lost your job or experienced a significant drop in income.
You are facing serious financial hardship due to medical expenses, unemployment, or other crises.
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