Currently Not Collectible Status: Pausing IRS Collection
When paying would prevent you from meeting basic living expenses, the IRS can pause collection entirely. Here's what CNC status does and doesn't do.
Quick Answer
Currently not collectible (CNC) status pauses IRS collection when paying your tax debt would leave you unable to meet basic living expenses. The IRS verifies your finances with Form 433-F, and while in CNC status, levies and garnishments stop. The debt and interest remain, a lien may stay, and the 10-year collection statute continues to run.
What CNC status is
Currently not collectible (CNC) status tells the IRS that collecting from you right now would create an economic hardship — you couldn't meet reasonable basic living expenses. When the IRS places your account in CNC, it stops active collection: no levies, no garnishments, no seizures.
How you qualify
You request CNC by submitting Form 433-F (or 433-A for self-employed individuals) with full financial disclosure. The IRS compares your income to allowable living expenses (based on national and local standards). If your income barely covers allowed expenses with nothing left to pay the IRS, you qualify.
What CNC does not do
CNC is not forgiveness. The debt remains, interest continues to accrue, and a Notice of Federal Tax Lien may stay in place. The IRS reviews your finances every one to two years, and if your income rises, the account comes out of CNC and collection resumes.
Why CNC can still be valuable
The 10-year collection statute keeps running while you're in CNC. For older debts, CNC can be the bridge that lets the statute expire, discharging the debt without payment. It also gives breathing room during unemployment, illness, or other temporary hardship.
Reporting requirements
While in CNC, you must file all returns on time and stay current on estimated payments. The IRS applies any refund to your balance. If your financial situation improves, you're expected to notify the IRS, though it also re-evaluates periodically on its own.
Frequently Asked Questions
Answers to the questions taxpayers ask most about this topic.
Does currently not collectible mean my debt is forgiven?
No. CNC pauses collection activity, but the debt and interest remain and a lien may stay in place. The IRS reviews your finances periodically, and the 10-year collection statute keeps running. For some taxpayers, CNC is the bridge that lets the statute expire.
How do I get currently not collectible status?
Submit Form 433-F (or 433-A) with full financial disclosure showing that paying would leave you unable to meet basic living expenses. The IRS compares your income to its allowable living expense standards. If nothing is left to pay the IRS, the account is placed in CNC.
Can the IRS levy while I'm in currently not collectible status?
No. While your account is in CNC, the IRS stops levies, garnishments, and seizures. Collection resumes only if your financial situation improves and the IRS removes you from CNC, or if you default by not filing returns or paying current tax.