Tax Resolution Services

Currently Not Collectible

If you are experiencing financial hardship and cannot pay your tax debt, Direct Tax Relief can help negotiate a “currently not collectible” status for your back taxes.

What is Currently Not Collectible?

Currently Not Collectible (CNC) status is a critical relief option provided by the IRS for taxpayers who are experiencing significant financial hardship and are unable to pay their tax debts. When the IRS grants CNC status, it acknowledges that the taxpayer has no current ability to make payments towards their outstanding tax liabilities. This status temporarily suspends all collection activities, including levies, garnishments, and other enforcement actions. It provides immediate relief to individuals facing severe financial challenges, allowing them time to stabilize their financial situation without the added pressure of IRS collection efforts.

Benefits of Currently Not Collectible

Financial Relief

Currently Not Collectible status offers immediate financial relief for individuals who are struggling to meet their basic living expenses while facing substantial tax debts. It allows taxpayers to prioritize essential needs such as housing, food, and healthcare without the threat of IRS collection actions.

Protection from Collections

Once declared Currently Not Collectible, the IRS halts all collection efforts against the taxpayer. This includes suspending wage garnishments, bank levies, and other forms of enforced collection. It provides peace of mind and a temporary respite from the stress and financial strain of dealing with aggressive IRS collection actions.

No Required Payments

During the period of Currently Not Collectible status, taxpayers are not required to make monthly payments towards their tax debt. This provides breathing room and allows individuals to focus on improving their financial situation without the immediate burden of paying back taxes.

With DTR’s Help

You can negotiate a "currently not collectible” declaration for back taxes.

Excellent option for those in financial hardship

Stops future garnishments and levies

Not required to make payments while in CNC status

Expertise at Affordable Rates

Get Help With Currently Not Collectible

How to Get Started

1. Consultation

Contact Direct Tax Relief for a free consultation with our Enrolled Agents to assess your eligibility for Currently Not Collectible (CNC) status.

2. Assessment

Our team will gather and analyze your financial information to support your CNC application, including income, expenses, assets, and liabilities.

3. Application

Direct Tax Relief will prepare and submit all required documentation to the IRS on your behalf, advocating for CNC status based on your financial hardship.

4. Follow-Up

We’ll monitor your application’s progress, communicate with the IRS as needed, and keep you informed throughout the process.

Got Questions? We've Got Answers!

What criteria must I meet to qualify for Currently Not Collectible status?

To qualify for CNC status, you must demonstrate to the IRS that paying your tax debt would cause significant financial hardship, leaving you unable to meet basic living expenses. This includes providing detailed information about your income, expenses, assets, and liabilities.

Can Currently Not Collectible status be granted for both federal and state tax liabilities?

Yes, CNC status can apply to both federal and state tax liabilities. However, the process and criteria may vary between federal and state tax authorities. Direct Tax Relief can assist with navigating CNC status for both federal and state tax debts.

How long does Currently Not Collectible status last?

CNC status is typically granted for a temporary period. The IRS periodically reviews the taxpayer's financial situation to determine if they are able to begin making payments towards their tax debt. Direct Tax Relief can provide ongoing support and assistance in maintaining CNC status as needed.

What happens if my financial situation improves while under Currently Not Collectible status?

If your financial situation improves, you may no longer qualify for CNC status. The IRS may review your case and request updated financial information to reassess your ability to make payments towards your tax debt.

Is there a fee for the initial consultation with Direct Tax Relief?

No, Direct Tax Relief offers a complimentary initial consultation to discuss your tax situation and explore options for resolving your tax debt, including Currently Not Collectible status.

Will Currently Not Collectible status affect my credit score?

CNC status itself does not directly impact your credit score. However, it's essential to manage your finances responsibly during this period to avoid other negative impacts on your credit.

Can I appeal a denial of Currently Not Collectible status?

Yes, if your CNC application is denied, you have the right to appeal the decision within a specified timeframe. Direct Tax Relief can assist you in preparing and submitting an appeal with additional supporting documentation.

Is Currently Not Collectible status permanent?

CNC status is typically temporary, as the IRS periodically reviews taxpayers' financial situations. Direct Tax Relief can help you maintain CNC status and explore long-term tax resolution options.

What happens if I miss a notification or request from the IRS during Currently Not Collectible status?

It's crucial to stay informed and respond promptly to any communications from the IRS while in CNC status. Direct Tax Relief can assist in handling IRS communications and ensuring compliance with all requirements.

Can Currently Not Collectible status be revoked?

CNC status may be revoked if there are significant changes in your financial circumstances that allow you to start making payments towards your tax debt. Direct Tax Relief provides ongoing support to help you navigate potential changes in CNC status.