​Currently-Not-Collectible (CNC) status is an IRS program for taxpayers who cannot afford to pay their back taxes, even through options like installment agreements or offers in compromise. When you’re granted CNC status, the IRS temporarily pauses collection actions against you, giving you time to improve your financial situation.  

 

It’s important to note that CNC status doesn’t erase your tax debt or relieve you from paying it altogether. Instead, it delays collection efforts until you’re in a better financial position. During this time, the IRS acknowledges that you cannot afford to pay your past-due taxes based on your current financial circumstances.

 

How Does CNC Status Work?

 

Before the IRS approves CNC status, you’ll likely need to complete a **Collection Information Statement** to prove your financial hardship. This process involves providing documentation about your income, expenses, and assets. Additionally, the IRS may require you to file any overdue tax returns before they approve your request.  

 

While in CNC status, the following can still occur:

• Interest and penalties will continue to accrue on your tax debt.

• The IRS can file a Notice of Federal Tax Lien, which secures their claim to your assets and ensures payment in the future.

• Any future tax refunds you’re entitled to may be applied to your outstanding tax debt.

 

How Do You Request CNC Status?

 

You can request CNC status directly by contacting the IRS. However, since the process requires accurate and detailed financial information, it’s often beneficial to work with an Enrolled Agent or United States Tax Court Practitioner. These experts can guide you through the process, help you provide the required documentation, and ensure that your request is handled correctly and efficiently.