A fantastic experience
Working with Luke at Choice Tax service has been a fantastic experience. His commitment to clear communication is what truly sets him apart. I was always impressed by his responsiveness to my questions.
- CarlaCurrently Not Collectible Status
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What is Currently Not Collectible Status?
Currently Not Collectible (CNC) status — sometimes called hardship status — is an IRS designation confirming that you cannot afford to pay your tax debt right now without sacrificing basic living expenses. Once the IRS places your account in CNC status, it generally stops active collection efforts, including levies and wage garnishments, while the debt remains on your account.
CNC status is not a settlement, and it does not erase what you owe. Interest and applicable penalties generally continue to accrue on the outstanding balance, and the IRS's 10-year collection statute keeps running while you are in CNC status. If that statute expires before your financial situation improves, the remaining balance can be written off entirely — which is why CNC status is often the right move for taxpayers facing genuine, ongoing financial hardship.
Who Qualifies for Currently Not Collectible Status?
You may qualify for Currently Not Collectible status if:
- Your monthly income does not exceed your necessary living expenses under IRS standards.
- You have little or no equity in assets the IRS could reasonably use to pay the debt.
- You have filed—or are prepared to file—all required tax returns.
- You are facing IRS levies, wage garnishment, or other active collection action you cannot afford.
- Your income is fixed, limited, or derived from Social Security, disability, or a similarly modest source.
- You do not currently have the ability to make payments toward an installment agreement.
- Your financial hardship is expected to continue for the foreseeable future.
- You need immediate relief from collection while a longer-term resolution is evaluated.
Qualifying for CNC status requires documenting your full financial picture on Form 433-F, or Form 433-A/433-B if you are self-employed or operate a business. The IRS will review your income, expenses, and any equity in real estate, vehicles, retirement accounts, or other assets before approving hardship status. Our team prepares this documentation, presents your case to the IRS, and helps you understand what to expect during the periodic reviews that follow.
How Our Process Works
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Investigate Your Financial Situation
We obtain and review your IRS account information and evaluate your income, expenses, and assets against IRS Collection Financial Standards to determine whether Currently Not Collectible status is a realistic option for your circumstances.
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Prepare and Present Your Hardship Case
We prepare the required financial disclosure — Form 433-F or Form 433-A/433-B — along with supporting documentation, and present your hardship case to the IRS in the strongest form possible.
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Secure and Maintain Your CNC Status
Once the IRS grants CNC status, we confirm the determination in writing and help you understand the annual review process, so you are prepared if the IRS requests updated financial information in the future.
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The Best Tax Relief Attorney & CPA In the Business
Logan and Greg lead a team of experienced tax professionals and support staff to achieve the best possible outcomes for Choice Tax Relief's clients.
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I interacted with 4 other providers before finding 'Choice Tax Relief'. All the others were offering a 'let's get your money up front, then see how this all plays out for you' approach.
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I can't say enough good things about Choice Tax Relief! A special thank-you to Nathan and Luke for their help and professionalism throughout the entire process.
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I highly recommend Choice Tax Relief. Tim & Luke were Amazing and Professional in getting my taxes done & turned in for multiple years. I will be using them for all my tax filings now and in the future. Stellar company and staff!
- JackieCurrently Not Collectible FAQs
Currently Not Collectible (CNC) status is an IRS determination that you cannot pay any part of your tax debt right now without sacrificing necessary living expenses. While your account is in CNC status, the IRS generally stops active collection, including levies and wage garnishments.
The IRS reviews your income, allowable monthly expenses under its Collection Financial Standards, and equity in any assets. If your allowable expenses meet or exceed your income and you have little or no equity the IRS could reasonably collect against, you may qualify. There is no fixed income limit — the IRS looks at your actual financial circumstances.
CNC status generally halts active enforcement such as bank levies and wage garnishments. It does not, however, prevent the IRS from filing a Notice of Federal Tax Lien, and it does not eliminate your obligation to file future returns on time.
Yes. CNC status pauses collection, but it does not stop interest or applicable penalties from continuing to accrue on your outstanding balance.
No. The IRS reviews CNC accounts periodically — typically annually — using updated financial information. If your income or financial circumstances improve, the IRS can remove CNC status and resume collection.
Individuals generally use Form 433-F, Collection Information Statement. Self-employed taxpayers and businesses may need to use Form 433-A or Form 433-B. We help prepare and organize the financial documentation the IRS requires to support your request.
Yes. Being placed in CNC status does not automatically prevent the IRS from filing a Notice of Federal Tax Lien, particularly on larger balances.
The IRS's 10-year collection statute of limitations continues to run while your account is in CNC status. If the statute expires before your financial situation improves and the IRS resumes collection, the remaining balance is generally written off.
Possibly, depending on your equity and access to those assets. The IRS considers the equity you could reasonably obtain from real estate, retirement accounts, and other property when evaluating a CNC request, but not every asset must be liquidated to qualify.
The IRS can remove your account from CNC status if your financial circumstances improve enough that you can begin making payments. We help clients understand when a change in income might affect their status and what resolution options are available if that happens.
No. An offer in compromise permanently resolves your tax debt for a reduced amount. CNC status simply pauses collection while your debt remains outstanding and continues to accrue interest and penalties. Some taxpayers eventually move from CNC status into an offer in compromise or installment agreement as their circumstances change.
Timing varies based on the complexity of your case and current IRS processing times, but it commonly takes several weeks to a few months once your financial documentation is submitted.
Failing to respond to an IRS request for updated financial information can result in the IRS removing your CNC status and resuming active collection, including levies and garnishments. We help clients respond to these periodic reviews on time to protect their status.
Other Tax Relief Services
Installment Agreement Negotiation
Need more time to pay? We negotiate an installment agreement with the IRS calculated for an affordable, sustainable monthly payment based on your financial circumstances.
Read more >Offer in Compromise
Qualifying taxpayers may be able to settle an IRS tax debt for less than the full balance owed. We evaluate your finances, calculate an appropriate offer amount, prepare the submission, and represent you during the IRS investigation.
Read more >IRS Levy Release
A bank levy or wage levy can create an immediate financial crisis. We communicate with the IRS, evaluate available collection alternatives, and work to obtain a levy release when the facts support one.
Read more >Penalty Abatement
IRS penalties can substantially increase a tax balance. We determine whether you may qualify for relief based on compliance history, reasonable cause, or another applicable IRS procedure.
Read more >Get IRS
Tax Relief
If you need immediate relief from IRS collections, call us today. You’ll get affordable, transparent pricing and a clear plan for the best possible tax debt settlement. Let the most trusted tax relief team lift the weight off your shoulders.