Currently Not Collectible (CNC)
What is CNC?
This option is for taxpayers who do not qualify for an Offer in Compromise, but cannot afford to participate in an Installment Agreement plan.
This option is for those taxpayers who absolutely have no way of paying off their tax debt, and no way for the IRS to collect the balance.
How does it work?
In this program, the statute of limitations continues to run, and the IRS will not pursue collection actions. However, your file can be taken off of CNC status back to active collection status if your financial status improves significantly.
If your account is placed on CNC status the IRS will stop the collection process temporarily until they can collect or another form of tax resolution becomes available. You tax debt will still accumulate interest and penalties and every year show financial statements to prove you are still “unable” to pay.
If at anytime your financial statements show that you are able to start paying back your debts to the IRS, the collection process will begin again. However, if the 10-year-statute of limitations for back taxes expires while you are on “currently not collectible” status, the tax debt you owe will permanently not be collectible and no other form of tax resolution will be needed.
We will help protect your financial future!
Free Consultation
Receive an initial analysis of your specific tax issues with one of our tax professionals.
Investigation
With your authorization, we obtain your IRS transcript for past personal filings.
Preparation
We review and amend your past and current tax filings to be in compliance with IRS standards.
Financial Analysis
We provide a comprehensive assessment of your tax debt issues with recommendations to attain relief.
Case Resolution
We negotiate with the IRS to reach a favorable resolution.