When categorized as Currently Not Collectable, also known as the CNC tax program, you won’t be required to make payments on your delinquent taxes and the IRS cannot come after you. That means the money in your bank account and your paycheck will be safe.
If you cannot afford to pay, the IRS cannot legally require you to pay.
To qualify for Currently Not Collectable, you must be able to show that making payments on your delinquent tax debt would put you in a financial hardship. By law, the IRS has to allow you to pay for your basic living expenses. If you can’t pay those, then the IRS can’t collect.
We will walk you through completing the qualifying process for entering into the status of Currently Not Collectable - the CNC tax program.
Typically, you will be kept in the status of Currently Not Collectable until you can afford to start making payments.
Keep in mind that if you need this status for more than 1 year, you will probably need to provide proof your financial status has not improved.
By law the IRS has to allow you to pay your essential living expenses such as rent, mortgage, utilities, insurance, car, gas, groceries, etc. Your income can be eaten up very quickly just paying for the essentials of life. Only after you are able to pay these items can the IRS legally collect from you. If you are struggling to pay for the essentials, then you may be able to use the status of Currently Not Collectable to allow you time to improve your financial situation. Read more
The Currently Not Collectable, also known as the CNC tax program, can provide you the needed breathing room to get back on your feet. Once back on your feet you can then start to work on resolving your back tax debts which is good for both you and the IRS.
The IRS has only so long to be able to collect from you - this is known as the Statute of Limitations. Even when you are in the CNC tax program the clock is still ticking. This can play a valuable role in your resolving your back tax debt for a fraction of what you owe. We will show you how to use the Statute of Limitation in conjunction with the Currently Not Collectable to help you resolve your tax debt for the least amount possible.
Well, we hope this is not a long-term solution for you. Currently Not Collectable will hopefully allow you time to get back on your feet and improve your financial situation. We would much rather see you making good money and paying an affordable monthly payment to the IRS, much like you would on a credit card, as opposed to not paying the IRS at all and struggling financially. We assume you want this as well. Our resolution program will help you complete the process to enter into the Currently Not Collectable/CNC tax program. When you are ready for your long-term solution our resolution program will help with that as well.
If the IRS agrees to allow you to enter the status of Currently Not Collectable – the CNC tax program, then they are agreeing with you that you don’t have the income or assets to pay your back taxes. Showing proof that you are not able to pay your back taxes will go a long way toward the IRS approving a settlement offer for less than the full amount. A key factor is that the IRS must believe it will be impossible for them to collect the whole debt from you. The Currently Not Collectable status is a great first step in the process of applying for a settlement for a fraction of what is owed.