Currently Not Collectible Status

If paying your taxes feels impossible right now, you may qualify for relief through a Currently Not Collectible (CNC) status, giving you temporary respite from IRS collection actions.

Understanding Currently Not Collectible (CNC) Status

Millions of taxpayers owe money to the IRS each year. While many can pay their debt in full, set up payment plans, or negotiate a reduced settlement, some simply lack the financial ability. In these situations, the IRS may classify the taxpayer as Currently Not Collectible.

Once placed in CNC status, the IRS pauses all collection efforts, and you won’t be required to make payments until your financial situation improves. Although this status doesn’t erase your tax debt, it provides much-needed breathing room to regain stability.

Contact Sky View Tax Resolution for a Free, No-Obligation Consultation Today!

“I had a $580,000 tax bill full of errors, and being retired with a fixed income, I couldn’t manage it. Sky View Tax Resolution reduced it to $3,000 and secured a Currently Not Collectible status for me. I couldn’t have imagined such results without their expertise and full handling of the case.”

— Russell

Frequently Asked Questions About CNC Status

Will the IRS seize my tax refunds while in CNC status?

Yes. Any tax refund you are owed while in CNC status may be applied toward your outstanding taxes or other government debts.

Can the IRS place a lien on my property during CNC status?

Yes. If your back taxes exceed $10,000, the IRS may file a Notice of Federal Tax Lien to protect its interests. This lien remains until your debt is fully paid.

Does CNC status reduce or eliminate my tax debt?

No. CNC status does not decrease or cancel your tax debt. The balance may continue to grow with added penalties and interest. However, if the statute of limitations expires while in CNC status, the IRS may write off the debt.

Do I need to reapply for CNC status every year?

No. The IRS monitors your tax filings and income. If your income increases, they may request updated financial information to reassess eligibility. You must remain current with tax filings, or the IRS may resume collection actions.