Currently Not Collectible – What Is It and How To Obtain Its Benefit?

Not everyone is financially strong to pay their tax bills in full at a time. The IRS currently non-collectible status will help you to pay back all your outstanding tax debts.

What is currently not collectible?

Currently not collectible (CNC) means the IRS has determined that you cannot afford to make your tax payments due to your financial hardships. Here, you can avoid paying your tax liabilities to the IRS until you are financially able to pay. The IRS will temporarily defer their tax collection process like no harassing letters, intimidating phone calls, or threatening levies. But your tax debts do not get wiped out completely.

You will still owe the previous IRS tax liabilities and it will continue to add interest and penalties to your account. This you need to pay back once you are financially stable to afford tax payments. The currently not collectible statute of limitations lasts for 10 years from the date the taxes are due. The IRS will continue to review your financial conditions and it may remove you from CNC status if it improves.

How do you qualify for CNC status?

The IRS will compare your income against your national and local standard living expenses to decide whether you qualify for CNC status. To qualify for CNC status, you must have little or no money left over after paying for your monthly essential living expenses like rent, utility bills, and groceries. Even if you have no income or your only source of income is Social Security, welfare, or unemployment wages, you are still eligible for CNC status.

How to apply for CNC status?

You may call the IRS directly at 800-829-1040 to request for your CNC status. You may also need to fill out IRS Form 433-F (Collection Information Statement) and provide relevant documents. The IRS will go through these documents to determine your eligibility to put your account in CNC status.

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