IRS Hardship Status

Currently Not Collectible

Pause IRS collection when you cannot afford to pay. No payments required while in CNC status.

If paying your tax debt would prevent you from meeting basic living expenses, CNC status may be your best option until your situation improves.

Check CNC Eligibility How CNC Works

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How Currently Not Collectible Works

Request CNC

Call IRS or respond to notice explaining your hardship situation

Financial Review

IRS verifies your income and expenses using Form 433-A

CNC Granted

Collection activities stop; no payments required

Annual Review

IRS checks if your situation has improved; may continue CNC

What Happens During CNC Status

✓ CNC Benefits

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No payments required - You keep your income for living expenses
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No levies or garnishments - IRS cannot take your bank accounts or wages
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Potential debt elimination - If CSED expires during CNC, debt is written off
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Easier than OIC - No application fee, simpler process

✗ CNC Limitations

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Debt still grows - Interest and penalties continue to accrue
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Refunds seized - IRS will take tax refunds and apply to debt
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Tax lien may be filed - Affects credit score and property sales
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Not permanent - IRS reviews status annually

CNC Eligibility Calculator

CNC Qualification Formula

Monthly Income − Allowable Expenses ≤ $0

If your IRS-allowable expenses equal or exceed your income, you may qualify for CNC. The IRS uses National Standards to cap certain expense categories.

IRS National Standards (2024 Monthly Allowances)

Household Size	Food & Clothing	Housing (Median)	Healthcare
1 person	$785	$1,660	$75
2 people	$1,410	$1,952	$150
3 people	$1,658	$2,048	$225
4 people	$1,967	$2,262	$300

Housing varies by county. Transportation: ~$856/month per vehicle. Source: IRS Collection Financial Standards.

Calculate Your Eligibility

CNC and the Collection Statute (CSED)

What is CSED?

The Collection Statute Expiration Date (CSED) is the deadline for the IRS to collect a tax debt. Generally, the IRS has 10 years from the date of assessment to collect. After CSED, the debt is legally uncollectible and is written off.

Key point: Time continues to run on CSED while you are in CNC status. This is unlike an Installment Agreement or OIC, which can suspend the CSED clock.

CNC Strategy

If you qualify for CNC and your CSED is approaching (within 2-3 years), staying in CNC until CSED may result in debt expiration under the Collection Statute. This is sometimes called "waiting out the CSED."

Example: If you owe $30,000 and CSED expires in 2 years, staying in CNC means no payments for 2 years, after which the debt disappears.

CNC vs. Other Payment Options

Feature	CNC	Installment Agreement	Offer in Compromise
Payments Required	None	Monthly	Lump or Monthly
Debt Grows	Yes	Yes	Settled
CSED Clock	Continues Running	May Be Suspended	Suspended
Approval Difficulty	Easiest	Easy	Hardest (~30%)
Application Fee	$0	$22-$178	$205
Best For	Financial hardship	Can afford payments	Significant savings

How to Request CNC Status

Option 1: Call the IRS

Call 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses)
Explain your financial hardship situation
Provide income, expense, and asset information verbally
IRS may approve CNC immediately or request Form 433-A
Follow up in writing if requested

Option 2: Respond to Notice

If you receive a collection notice (CP14, CP501, etc.)
Write a letter requesting CNC status
Explain why you cannot pay (job loss, medical, etc.)
Include Form 433-A with supporting documents
Send to the address on your notice

Pro Tip: Have your last 3 months of bank statements, pay stubs, and a list of monthly expenses ready before calling. The IRS will ask for this information.

Currently Not Collectible FAQs

Currently Not Collectible (CNC) is an IRS status that pauses collection activities when you cannot afford to pay your tax debt and basic living expenses. When in CNC status, the IRS will not levy your bank accounts, garnish your wages, or take other collection actions. However, interest and penalties continue to accrue, and the IRS may file a federal tax lien.

To qualify for CNC, you must demonstrate that paying your tax debt would prevent you from meeting basic living expenses (food, housing, transportation, healthcare). The IRS uses National Standards to determine allowable expenses. If your allowable expenses equal or exceed your income, leaving no disposable income for tax payments, you may qualify for CNC.

Call the IRS at 1-800-829-1040 and explain your financial hardship. Be prepared to provide information about your income, expenses, and assets. The IRS may request Form 433-A (Collection Information Statement) to verify your financial situation. You can also respond to collection notices by requesting CNC consideration in writing.

CNC status is not permanent. The IRS typically reviews CNC cases annually, or when your income changes (e.g., you get a new job). If your financial situation improves, the IRS may remove CNC status and resume collection. CNC remains in effect until the 10-year Collection Statute Expiration Date (CSED) if your situation does not improve.

While in CNC status, you do not make payments, but interest and the failure-to-pay penalty continue to accrue. Your debt will grow over time. However, if the 10-year CSED expires while you are in CNC, the debt becomes legally uncollectible and is written off. The IRS may file a Notice of Federal Tax Lien even during CNC.

Yes. Even in CNC status, the IRS will offset (seize) any federal tax refunds to apply toward your debt. They may also take state refunds through the State Income Tax Levy Program. If you typically receive refunds, consider adjusting your withholding to reduce refund amounts that would be seized.

Having assets does not automatically disqualify you from CNC, but the IRS will consider your total financial picture. If you have significant equity in assets like a home or retirement account, the IRS may expect you to use those to pay your debt. However, they typically allow reasonable equity in a primary residence and retirement accounts.

CNC pauses collection but keeps your debt active (growing with interest). OIC settles your debt for less than owed. CNC is easier to obtain and does not require upfront payment, but your debt remains. OIC is harder to qualify for (~30% acceptance) but can permanently eliminate most of your debt. Both require financial disclosure.

Check If CNC Is Right for You

Our calculator analyzes your income, expenses, and assets to determine if Currently Not Collectible status makes sense for your situation.

Calculate CNC Eligibility