When you genuinely cannot pay anything, the IRS may temporarily pause collection. Here is how that works.
Currently Not Collectible (CNC) is a status the IRS can grant when a taxpayer's income does not exceed their allowable necessary living expenses, meaning there is literally nothing left over to pay taxes. When granted, the IRS temporarily suspends active collection efforts — including wage garnishments, bank levies, and phone calls from collectors.
To be approved for CNC status, you generally must show that your monthly income, after subtracting IRS-allowable necessary living expenses, leaves no money available to pay taxes. Allowable expenses are based on national and local standards the IRS publishes — things like housing, food, transportation, and medical.
People who may qualify include:
| CNC Does | CNC Does Not |
|---|---|
| Stop active collection calls | Erase or reduce the tax debt |
| Stop wage garnishments | Stop interest from accruing |
| Stop bank levies | Stop penalties from accruing |
| Pause the collection process | Last forever — IRS reviews annually |
| Buy time to improve your situation | Remove a filed Notice of Federal Tax Lien |
You can request CNC status by contacting the IRS (by phone at the number on your notice) and explaining your financial situation, or by working through a tax professional. The IRS will typically ask you to complete Form 433-A (Collection Information Statement for Wage Earners and Self-Employed) or Form 433-F to document your income and allowable expenses.
If approved, the IRS will send a letter confirming CNC status. You should still file all required tax returns going forward — CNC does not exempt you from filing requirements.
The IRS will review your account periodically (typically when you file a tax return showing higher income). If your financial situation improves, the IRS may remove CNC status and resume collection. You would then typically be given the opportunity to enter a payment plan.
Some taxpayers remain in CNC long enough that the 10-year collection statute eventually expires on some or all of their debt. However, counting on this as a strategy is risky — the statute can be extended by various events.
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