If you’re struggling to pay your tax debt, the IRS offers a program called Currently Not Collectible (CNC) or Hardship Status. This program provides temporary relief from tax collection activities, allowing you to focus on getting back on your feet financially. When the IRS determines that you’re unable to pay your tax debt due to financial hardship, they may place your account in Currently Not Collectible status. This means that the IRS will not actively pursue collection activities, such as sending notices or levying your bank accounts.

How to Qualify for IRS Currently Not Collectible/Hardship Status

You must demonstrate to the IRS that you’re experiencing financial hardship to qualify for CNC status. This typically involves providing financial information, such as income, expenses, and asset values. The IRS will then determine if you have enough disposable income to make monthly payments. If you don’t qualify for a payment plan, they may place your account in CNC status.

Benefits of IRS Currently Not Collectible/Hardship Status

Being placed in CNC status can provide significant relief, including:

• No active collection activities, such as notices or levies
• No accrual of penalties and interest
• Ability to focus on getting back on your feet financially