Currently Not Collectible
If the IRS determines that you cannot pay any of your tax debt, the IRS may report your account currently not collectible and temporarily delay collection until your financial condition improves. Being currently not collectible does not mean the debt goes away, it means the IRS has determined you cannot afford to pay the debt at this time.
More from H&R Block
If you can’t make payments on your tax balance and still pay for your day-to-day living expenses, the IRS may grant you a temporary reprieve.
This deferred payment option is called currently not collectible (CNC) status. It simply means that the IRS isn’t requiring you to make any payments right now. When you request CNC status, the IRS will review your financial situation in detail to determine your ability to pay. The IRS will continue every year that you’re under CNC status. And if your financial situation improves, the IRS will expect you to begin making payments.
There are several important things to consider if you request CNC status:
- If you owe more than $10,000, the IRS will likely file a tax lien as a matter of public record.
- Penalties and interest will continue to accrue on your tax balance.
- The IRS will apply future tax refunds to your tax balance.
Get help from an IRS expert
H&R Block’s experts can solve any IRS problem, no matter how complex.
Currently not collectible (CNC) status can allow you to defer paying your tax bill for a time, if you qualify. Learn how to get CNC status from the experts at H&R Block.
Learn about the different options when you can't pay or still owe money from a past return from the tax experts at H&R Block.
Get the facts from H&R Block about IRS payment options when you can't pay your tax bill, including short-term extensions, monthly payment plans, and more.
Learn what to do when you can’t pay your taxes – to avoid these 10 consequences of tax debt. Get the facts from the tax experts at H&R Block.
Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems. Get the facts from the experts at H&R Block.
Get the facts from H&R Block about the four types of IRS penalty relief, and which IRS penalty relief option may be best for your situation.