Currently Not Collectible (CNC)

What is Currently Not Collectible?

When your account is placed in uncollectible status, it allows you to remain in tax compliance status, without worrying about enforcement action. It also allows you to recover from a financial setback.

If you are unable to afford an Installment Agreement, “Currently Not Collectible” status, also referred to as (CNC) may be an option. We may be able to help you apply for CNC status if your income is not enough to support your allowable living expenses. Once considered Not Collectible, the IRS will temporarily suspend collection activity against you until it is determined that your financial circumstances have improved and you may be able to begin repaying your tax liability.”

While your account is in CNC standing, the Internal Revenue Service usually won't attempt to collect from you. For example, It will not levy your assets and income. However, the IRS will certainly still evaluate rate of interest and also fines to your account and might maintain your reimbursements and also apply them to your financial obligation. You'll also continue to get an annual expense from the IRS as needed under the law.

Prior to the Internal Revenue Service will position your account in CNC standing it may ask you to file any kind of past due tax-returns. If you ask for CNC standing, typically, the IRS may ask you to offer financial info, examine your income and spendings, as well as choose whether you can sell off any type of assets/property or get a loan. The IRS might collect the balance you owe if your financial situation has actually improved when they perform an annual assessment of your earnings.

The Internal Revenue Service can try to collect your tax obligations approximately 10 years from the date they were analyzed. The Internal Revenue Service may suspend the ten-year period in certain circumstances. The time the suspension is in effect will certainly expand the time the Internal Revenue Service has to collect the tax. The IRS won't put on hold interest and fine costs, even if it stops attempting to collect the balance due. You might want to take into consideration other possible payment alternatives within your methods prior to asking the Internal Revenue Service to put your account in CNC standing.

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Currently Not Collectible (CNC)
When your account is placed in uncollectible status, it allows you to remain in tax compliance status, without worrying about enforcement action. It also allows you to recover from a financial setback.
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IRS Bank Levies are generally released when you pay off your tax debt. Depending on the situation, we can appeal and have the IRS release a levy. If the levy would create an extreme financial hardship for you, the IRS may hold off on collecting, but the debt will still exist.
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With Tax Alliance's help, it may be possible to wipe your tax debt clean at an enormous discount. If you qualify for an Offer in Compromise, or “OIC,” the IRS will accept less than the amount a taxpayer owes on a tax bill and call it even.
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