What Is Currently Not Collectible Status, and How Do You Qualify?
Currently Not Collectible (CNC) status is an IRS designation that temporarily suspends active collection efforts when you cannot afford to pay your tax debt and cover basic living expenses. While in CNC status, the IRS generally will not levy your wages, bank accounts, or other assets. You can request CNC status by contacting the IRS and providing proof of financial hardship.
Key facts about CNC status:
- Levies and seizures are paused while the account is in CNC
- Penalties and interest continue to accrue on the outstanding balance
- The IRS may still file a federal tax lien against your property
- Tax refunds may be applied to your outstanding debt
To request CNC status, you typically call the IRS or respond to a collection notice. The IRS will ask you to complete Form 433-F (Collection Information Statement) or a more detailed Form 433-A, documenting your income, expenses, and assets. The IRS compares your financials against its allowable living expense standards to determine whether you qualify.
What CNC status does and does not do:
| CNC provides | CNC does not provide |
| Pause on levies and wage garnishment | Forgiveness of the tax debt |
| Temporary relief from collection calls | Pause on interest and penalties |
| Time to stabilize your finances | Removal of federal tax liens |
| Continued ability to make voluntary payments | Guarantee against future review |
The IRS reviews CNC accounts periodically, typically once per year. If your income increases or your financial situation improves, the IRS may remove CNC status and resume collection. The 10-year collection statute continues to run while your account is in CNC, which means the debt may eventually expire if you remain unable to pay.
If your situation changes and you can afford partial payments, an installment agreement or Offer in Compromise may be a better long-term solution.
Last updated on April 29, 2026
