Currently Not Collectible | IRS Hardship Program

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If you’re genuinely unable to pay your IRS balance, you may qualify for Currently Not Collectible (CNC) status — a hardship classification under the IRS Fresh Start framework.

CNC does not erase tax debt, but it immediately stops IRS collection activity, including wage garnishments and bank levies, while you regain financial stability.

At Newline Tax Group, we help determine whether CNC is appropriate when a payment plan won't help and prepare cases that meet IRS standards — not ones that get delayed or denied.

👉 Start an IRS Notice Review

CNC status means the IRS agrees that collecting from you right now would cause financial hardship.

Once approved:

• wage garnishments stop
• bank levies are released or prevented
• collection calls and enforcement pause
• you remain protected while finances stabilize

The debt still exists, but the IRS places your account in a non-collectible status, giving you the IRS tax relief sought and real breathing room.

In some cases, older tax debts may approach expiration under the Collection Statute Expiration Date (CSED) while CNC remains in place.

👉 Check Your Eligibility

CNC is based on ability to pay, not preference.

You may qualify if:

• you have little or no disposable income after basic expenses
• your income falls below IRS allowable living expense standards
• you cannot afford even minimal monthly payments
• you can document financial hardship accurately

The IRS evaluates this using financial disclosure forms such as Form 433-F or Form 433-A, which detail income, expenses, and assets.

These forms must be accurate and properly supported.

Our team prepares and submits them correctly to avoid unnecessary delays or denials.

CNC is not a permanent fix.
It is a protective status that buys time.

When paying is not realistic, CNC can:

• stop immediate enforcement
• prevent wage and bank account seizures
• allow financial recovery without pressure
• preserve future resolution options
• allow the IRS statute clock to continue running in some cases

For taxpayers in true hardship, CNC is often the most effective IRS Fresh Start Program for immediate relief available.

👉 See What Options May Apply

Many CNC requests fail because:

• income is overstated
• expenses are improperly categorized
• required documentation is missing
• forms are filled out incorrectly

We handle the entire process so you don’t have to navigate IRS standards alone.

Our licensed team will:

• review IRS transcripts and account status
• analyze financials against IRS guidelines
• prepare accurate 433-F or 433-A forms
• communicate directly with the IRS
• monitor your case and protection status

You’ll know where your case stands and what to expect going forward.

Does CNC erase my tax debt?
No. CNC pauses collections. However, the IRS statute of limitations continues to run, which may affect older balances.

How long does CNC last?
The IRS periodically reviews financial status. If income improves, CNC may be removed and other options considered.

Can the IRS still file a lien?
Yes. A federal tax lien may still be filed while in CNC status. We help minimize its impact and plan next steps.

If financial strain is preventing you from paying the IRS, ignoring the problem only increases risk.

Understanding whether CNC applies is the first step.

👉 See How Tax Resolution Works