How Currently Not Collectible Status Works

As long as you have proof of not having any source of income, you can declare your debt as “currently not collectible.” Once you have provided proof, the government will usually avoid going after your money with liens or levies. And they won’t garnish your wages. However, there is no certainty that the government will not come after you sooner or later.

For instance, interest and penalties will continue to increase when in CNC status. On the other hand, if you do not have 20 percent equity in it, or if the expense of seizing it is more than it’s worth, the IRS usually won’t go after an asset.

CNC status can only give you a few months or years. They can still reopen the case at any time. This happens every few years or months, especially if you owe extra taxes, sell land, or raise your income. For back taxes owed, there is a ten-year Statute of Limitations, in which the tax debt is forgiven.

How We Can Help

We will be able to assist you in applying for this option, until all collection activities are stopped. Currently not collectible is a particularly valuable choice for taxpayers who simply cannot afford to pay back taxes to the IRS and need more time for their financial affairs to be sorted out.