What Is Currently Not Collectible (CNC) Status?

If you're unable to pay your IRS tax debt and struggling to meet basic living expenses, the IRS may temporarily pause collections. This article applies to U.S. federal tax law and explains what Currently Not Collectible (CNC) status is, how it works, and how to qualify. TaxRise has helped thousands of Americans protect their income and assets with proven tax resolution solutions.

Currently Not Collectible (CNC) status is a temporary IRS designation that pauses all collection activity when a taxpayer cannot afford to pay their tax debt without experiencing financial hardship.

What This Means

Currently Not Collectible status means the IRS agrees not to pursue collections — including wage garnishments, bank levies, or asset seizures — because your income and expenses show that you cannot pay without sacrificing necessities like food, housing, or medicine.

Your tax debt doesn’t go away, but collection efforts are suspended while you're in CNC. Interest and penalties may continue to accrue, and the IRS will revisit your status periodically.

Why the IRS Offers Currently Not Collectible Status

The IRS is legally required to collect taxes — but not at the expense of pushing taxpayers into financial crisis. If your monthly income is barely enough to cover basic expenses, the IRS may place your account in CNC status to prevent undue hardship.

This policy gives struggling taxpayers breathing room and prevents aggressive enforcement while they work toward stability or resolution through other tax relief programs.

Who Can Qualify for Currently Not Collectible Status

• Low-income taxpayers or those living paycheck to paycheck
• Individuals with high medical costs or financial hardship
• Unemployed or underemployed workers
• Retirees and people living on Social Security

CNC status is available to individuals and small businesses, but approval depends on accurate documentation of your income, expenses, and assets.

How to Apply for Currently Not Collectible Status

Here’s how to pursue Currently Not Collectible status and what to expect:

• Complete IRS Form 433-A, 433-F, or Form 433-B: These forms detail your financial condition, including income, expenses, assets, and liabilities.
• Submit Documentation: You’ll need to provide pay stubs, rent/mortgage receipts, utility bills, and medical expenses to support your hardship claim.
• Stay Compliant: You must file all required tax returns before the IRS will consider your CNC request.
• Understand the Terms: While CNC stops collections, the IRS may still file a tax lien and will re-evaluate your status periodically (usually every 1–2 years).

If your financial situation improves, the IRS may remove CNC status and resume collections unless you’ve resolved your tax debt through another tax relief program.

How TaxRise Can Help

TaxRise specializes in helping taxpayers and business owners qualify for tax relief. If you’re unable to pay your tax debt and qualify for a resolution, our team can file the right forms, gather documentation, and negotiate directly with the IRS.

Schedule a free consultation today and find out if you qualify to stop IRS collections through CNC status or other tax relief options.

Frequently Asked Questions

• Will the IRS still charge interest during a Currently Not Collectible Status?
  Yes. Interest and penalties continue to accrue, but collections are paused. You may still qualify for penalty abatement later.
• Can Currently Not Collectible status be permanent?
  No. It’s reviewed periodically. If your financial situation improves, you may be expected to start payments or pursue a different tax settlement option.
• Does Currently Not Collectible stop tax liens?
  Not always. The IRS can still file a federal tax lien to secure the tax debt, but they won’t actively seize your assets while you’re in CNC status.

Reviewed by TaxRise Tax Professionals
This article was reviewed by the TaxRise Tax Professional Team. TaxRise has helped thousands of Americans eliminate millions in IRS and state tax debt. This content is for informational purposes only and is not legal or tax advice.