If you’re struggling to pay your bills and the IRS is knocking at your door, you may feel like there’s no way out. But the IRS recognizes financial hardship—and in some cases, they’ll agree to pause collection efforts completely.
This relief option is called Currently Not Collectible (CNC) status.
At Back Tax Rescue, we’ve helped clients across Gwinnett County qualify for CNC status when they truly can’t afford to pay. In this article, you’ll learn what Currently Not Collectible means, who qualifies, how to apply, and what to expect once approved.
💼 What Is “Currently Not Collectible” (CNC) Status?
Currently Not Collectible is a status granted by the IRS when it determines that you can’t pay your tax debt without creating severe financial hardship.
When you’re approved for CNC:
- The IRS halts all collection activity
- You won’t be subject to wage garnishments or bank levies
- The IRS may still file a tax lien, but won’t attempt to seize your assets
📌 CNC doesn’t forgive your debt—but it buys you time until your situation improves or the statute of limitations expires.
✅ Who Qualifies for CNC Status?
The IRS grants CNC based on a detailed financial evaluation. You must show that your necessary monthly living expenses exceed your income.
Eligibility depends on:
- Low or fixed income (Social Security, disability, unemployment)
- High medical expenses or dependent care costs
- Unemployment or underemployment
- Zero or negative cash flow after essential living expenses
🔍 The IRS uses strict standards—only certain expenses are considered “allowable.” Things like private school tuition, luxury expenses, or voluntary retirement contributions are usually not accepted.
📄 How to Apply for Currently Not Collectible Status
Applying for CNC status involves completing one of the following financial statements:
- Form 433-A (Collection Information Statement for Individuals)
- Form 433-F (used in many wage-earning CNC cases)
- Form 433-B (for businesses)
These forms ask for:
- Income details (wages, benefits, business income)
- Monthly living expenses
- Assets (home, vehicles, bank accounts)
- Debts and liabilities
You must also provide documentation such as:
- Pay stubs or benefit letters
- Utility bills and lease agreements
- Bank statements
- Medical bills or child support orders
🕒 What Happens After CNC Is Approved?
Once you’re approved for hardship status:
- The IRS suspends all enforced collection activity (garnishments, levies, etc.)
- You’ll still accrue penalties and interest on your unpaid balance
- The IRS may file or keep an existing tax lien
- Your case is reviewed annually to see if your financial situation has improved
If your income increases or your expenses drop, you may be removed from CNC and required to resume payments.
🔄 Alternatives If You Don’t Qualify for CNC
If you don’t qualify, you may still have relief options:
- Offer in Compromise – Settle your tax debt for less
- Installment Agreement – Pay monthly based on what you can afford
- Partial Payment Installment Agreement – Pay a portion of the debt over time
- Penalty Abatement – Reduce or remove late fees
We’ll help determine the best path based on your full financial picture.
❓ CNC vs. Offer in Compromise: What’s the Difference?
| Feature | Currently Not Collectible | Offer in Compromise |
|---|---|---|
| Goal | Pause IRS collections | Settle debt for less |
| Debt forgiveness? | No | Yes (partial or full) |
| Timeframe | Temporary (reviewed yearly) | Permanent if accepted |
| Monthly payments? | No | Yes (if structured as periodic offer) |
| Ideal for | Short-term hardship | Long-term inability to pay |
📌 CNC can be a stepping stone toward an Offer in Compromise once your financial documentation is organized.
👨💼 How Back Tax Rescue Helps with CNC Applications
Getting approved for hardship status requires:
- Precise financial documentation
- Understanding of IRS expense standards
- Timely filing of forms
- Communication with IRS agents and collections departments
We help you:
- Evaluate your eligibility
- Prepare all IRS forms accurately
- Submit required documents
- Represent you directly with the IRS
- Maintain your CNC status and avoid future surprises
We’ve successfully secured CNC approval for clients in Dacula, Norcross, Lawrenceville, and all over Gwinnett County.
📞 Don’t Let IRS Pressure Make a Bad Situation Worse
If you’re facing financial hardship and can’t afford to pay your tax debt, you may qualify for relief today. Let’s find out.
📞 Call Back Tax Rescue: 470-699-1187
📧 Email: info@backtaxrescue.com
🗓️ Book a Free Hardship Assessment »
We’ll fight to protect your income, give you room to breathe, and help you move forward—without fear of the IRS.
