Currently Not Collectible Status
Temporary Relief from IRS Collection When Facing Financial Hardship
If you're experiencing genuine financial hardship, Currently Not Collectible (CNC) status can temporarily pause IRS collection activities while you get back on your feet.
What is Currently Not Collectible Status?
Currently Not Collectible (CNC) status is a temporary designation the IRS assigns when they determine that collecting from you would create an economic hardship. When your account is placed in CNC status, the IRS temporarily suspends collection activities, including levies and garnishments.
To qualify for CNC status, you must demonstrate that paying your tax debt would leave you unable to meet basic living expenses. The IRS will review your income, necessary expenses, and assets to make this determination.
It's crucial to accurately represent your financial situation—neither overstating nor understating your assets, income, and expenses. Axio Tax Relief ensures you present a complete and accurate financial picture to the IRS.
Benefits and Important Considerations
Collection Activity Stops
The IRS will not levy your bank accounts, garnish your wages, or seize your property while you're in CNC status.
Time to Recover
CNC status gives you breathing room to improve your financial situation without IRS pressure.
Debt Still Exists
Your tax debt remains on the books and continues to accrue interest and penalties. CNC is not debt forgiveness.
Periodic Review
The IRS will periodically review your financial situation and may resume collection if your circumstances improve.
Who Qualifies for CNC Status?
You may qualify for Currently Not Collectible status if:
- Your income only covers basic necessary living expenses
- You have no assets that can be liquidated to pay the debt
- Paying the tax would create a financial hardship
- You're unemployed or have experienced a significant drop in income
- You have significant medical expenses or other financial burdens
How Axio Tax Relief Helps
Complete Financial Analysis
We thoroughly review your income, expenses, and assets to build a comprehensive financial profile.
Accurate Documentation
We ensure you're not overstating or understating your financial situation, presenting an accurate picture to the IRS.
IRS Representation
We handle all communications with the IRS and advocate for CNC status on your behalf.
Long-term Planning
While in CNC status, we help you plan for when your financial situation improves and determine the best permanent resolution option.
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