What is Currently Not Collectible?
When your account is placed in uncollectible status, it allows you to remain in tax compliance status, without stressing over enforcement action. It also allows you to recover from a financial setback.
If you are not able to afford an Installment Agreement, "Currently Not Collectible" status, also known as (CNC) may be an alternative. We may be able to help you request CNC status if your income is insufficient to support your allowable living expenses. Once considered Not Collectible, the IRS will temporarily halt collection activity against you until it is decided that your financial circumstances have improved and you might be able to start repaying your tax liability.
While your account is in CNC standing, the IRS typically will not attempt to collect from you. For example, It will not levy your assets and income. However, the IRS will still evaluate the interest rate and fines to your account and might maintain your reimbursements and apply them to your financial liability. You'll also continue to get an annual expense from the IRS as needed under the law.
Before the IRS will put your account in CNC standing it may ask you to file any past due tax-returns. If you request CNC standing, usually, the IRS might ask you to provide financial information, analyze your earnings and spendings, and also decide whether you can sell off any kind of assets/property or get a loan. The IRS might collect the balance you owe if your economic situation has improved when they conduct an annual evaluation of your earnings.
The IRS can attempt to collect your tax liabilities roughly ten years from the date they were analyzed. The IRS may suspend the ten year period in certain circumstances. The time the suspension is in effect will increase the amount of time the IRS has to collect the tax. The IRS won't put on hold interest and fine costs, even if it stops trying to collect the balance due. You may want to take into consideration other possible repayment options within your means before asking the IRS to place your account in CNC standing.
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