If you owe money to the IRS, their goal is to get you to pay as much as possible — even if you can’t afford to settle an outstanding balance. But you have options. If you are experiencing financial difficulties, the IRS offers special provisions for you to pause collection activity. You may qualify for Currently Not Collectible (CNC).
At Polston Tax Resolution & Accounting, we can help you obtain hardship CNC status by completing the necessary research, forms and negotiations. Back tax obligations are more manageable when you have the support of our specialized CNC tax services. Connect with us to learn how to declare hardship and buy time until your financial situation changes.
If IRS notices continue to pile up, but you’re experiencing economic difficulties, the IRS offers hardship tax relief options for individuals and businesses. CNC Status (Status 53, Currently Not Collectible) is an IRS hardship payment alternative that allows you to defer payments if you meet qualifying criteria.
Once approved, the IRS pauses collection actions around your qualifying tax debt. You can halt payments for tax debt accrued over the past 10 years. While the interest will continue accumulating, CNC status allows you to breathe and improve your financial situation without the risk of wage garnishments or bank levies.
CNC status is a short-term solution. It does not erase your unpaid taxes. The IRS will review your financial situation every two years to confirm or revoke eligibility. During that time, you can focus on getting back on your feet while the tax professionals at Polston Tax seek strategic solutions for resolving your tax burden.
Keep in mind that if your income status changes at any point, you will most likely lose your CNC status and be required to make monthly payments again.
Any taxpayer who cannot make monthly payments on taxes owed may apply to the IRS for Currently Not Collectible status. However, they must meet certain eligibility requirements.
To qualify for CNC status, you need to show the IRS that you can’t pay your taxes because you’re going through a tough time financially. They will ask for details about your finances and personal situation, a process that usually follows these main steps:
Once the IRS has determined that you qualify for Currently Not Collectible status, they will be unable to garnish your wages and levy your bank accounts. However, you will still owe all past-due taxes, and they may continue to accumulate penalties and high interest rates.
With Polston Tax, you can address this risk with personalized solutions to meet your unpaid tax requirements.
Applying for Currently Not Collectible status is complex and challenging without an experienced tax professional guiding you through the process. Along with proving that your financial hardship is severe enough to qualify, the application process requires a deep understanding of tax liability, and you must accurately complete forms such as IRS Form 433-A, Form 433-F or Form 433-B.
One misstep and you may miss out on the benefits this program could bring to your financial situation. Polston Tax uses the combined resources of over 100 attorneys and tax professionals to make the process as smooth and stress-free as possible.
Polston Tax is here to assist you through the processes of declaring hardship and navigating tax debt. We employ financial attorneys and experienced tax professionals who understand IRS hardship programs like the Currently Not Collectible classification and will ensure you receive the support you qualify for.
At Polston Tax, we connect people and businesses with IRS tax relief. Whether that’s Currently Not Collectible status or another tax resolution option, our experienced team of tax professionals works tirelessly to take the weight of tax troubles off your shoulders.
When you choose nationwide tax relief services from Polston Tax, you can be sure of:
Polston Tax has more than two decades of experience supporting individuals and businesses through financial hardship and tax debt. We will work closely with you to execute the optimal tax resolution strategy for your situation.
Learn more about hardship tax relief or begin the CNC application process with the experienced team at Polston Tax guiding the way. If you are searching for trusted companies for currently not collectible status, please get in touch with us online today.
Currently Not Collectible status is an IRS hardship program that pauses collection activities on your tax debt if you’re experiencing financial difficulties. When approved, the IRS stops collection actions like wage garnishments and bank levies, giving you time to improve your financial situation. It does not erase your debt—interest and penalties continue to accrue, and the IRS may still offset future tax refunds toward your balance.
You may qualify for CNC if you can demonstrate to the IRS that:
– Your monthly expenses exceed your monthly income
– You cannot afford to make monthly tax payments without causing significant financial hardship
– You have no income, or your only income is from Social Security, welfare, or unemployment
– You cannot pay the full tax debt or a sustainable installment payment
– The IRS evaluates your eligibility based on a detailed analysis of your financial situation
To apply for CNC, you’ll need to:
– Complete IRS Form 433-A (for individuals), Form 433-F (simplified version), or Form 433-B (for businesses)
– Gather financial documentation including income statements, expense records, and information about your assets
– Contact the IRS directly at 833-678-7020 (individual taxpayers) or 800-829-4933 (business taxpayers)
– Work with an IRS agent to submit your request with supporting documentation
– Many people find it helpful to work with a tax professional to ensure all forms are accurately completed.
The IRS will ask for:
– Personal and employment information
– Gross monthly income from all sources (wages, Social Security, pensions, etc.)
– Monthly allowable expenses (housing, utilities, food, transportation, medical costs)
– Information about liquefiable assets (stocks, bonds, savings accounts)
– For larger debts (over $100,000): details about real estate, vehicles, credit reports, and other property
– Three months of utility bills, pay stubs, and expense documentation
No. CNC status does not erase your debt. However, the IRS has a 10-year collection statute of limitations. If you remain in CNC status and your financial situation doesn’t improve during this period, your debt may be written off after 10 years. Any liens placed on your assets will also be released once the collection period expires.
