Tax Resolution Clarity
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Currently Not Collectible (CNC)

Currently Not Collectible status is granted when the IRS determines that you cannot afford to pay your tax debt without causing financial hardship. While in CNC status, the IRS suspends collection activity.

Timeline

The IRS does not publish a decision time

Cost

No cost to request CNC status

How the IRS decides

The IRS states it may temporarily delay collection until a taxpayer's financial situation improves, and that it may ask for a Collection Information Statement — Form 433-F, 433-A or 433-B — together with proof of financial status.

Key Takeaways

  • The IRS states most collection activities are temporarily suspended
  • Penalties and interest keep accruing, and the full amount is still owed
  • Federal tax refunds are still applied to the debt
  • The IRS may still file a Notice of Federal Tax Lien

Best For

  • Taxpayers experiencing severe financial hardship
  • Those with very low or no income
  • People who cannot afford basic living expenses
  • Those who need temporary relief while improving finances

Requirements

  • 1
    All required tax returns must be filed
  • 2
    Must demonstrate that paying would cause hardship
  • 3
    Income must be at or below IRS allowable expense standards
  • 4
    Must provide financial documentation

How to Apply for Currently Not Collectible (CNC)

1

Gather Documents

Collect proof of income, expenses, and financial hardship.

2

Contact IRS

Call the number on your bill or notice, or the IRS at 800-829-1040.

3

Financial Review

Provide information about your income and expenses to the agent.

4

Determination

IRS decides where IRS conditions are met for CNC status.

5

Periodic Review

IRS may review your finances annually to check if you can resume payments.

Advantages

  • The IRS states that in CNC status it has temporarily suspended MOST collection activities. Not all — see the cons.
  • The IRS states it may temporarily delay collection until your financial condition improves. There is no fixed time period.
  • The IRS states you may need to complete a Collection Information Statement — Form 433-F, 433-A or 433-B — and supply documents verifying income, monthly living expenses, bank accounts and assets.
  • It is requested by telephone rather than by a filed application, though the IRS states it may ask for a Collection Information Statement and supporting documents before approving a delay.
  • IRM 5.1.19.3, "Case Actions That Can Suspend And/Or Extend A CSED", does not list Currently Not Collectible among them.

Disadvantages

  • The IRS states penalties and interest continue to accrue until the balance is paid in full.
  • The IRS states it may file a Notice of Federal Tax Lien to protect the government's interest in your property.
  • The IRS states that if you are due a federal tax refund it will apply it to your unpaid tax debt. Collection does not stop in this respect.
  • The IRS states it may review your financial situation later and may resume collection if your ability to pay improves.
  • You still owe the full amount. The IRS states the debt is not forgiven or cancelled.

Frequently Asked Questions

How long does CNC status last?
The IRS states there is no fixed time period, and that it may review your financial condition periodically to determine whether you can make payments. Separately, the IRS publishes a collection statute — generally ten years from assessment — after which it can no longer collect.
Will my tax debt go away?
No. The IRS states you still owe the full amount and that it is not forgiven or cancelled, and that penalties and interest continue to accrue. The collection statute still governs how long the IRS has to collect, and CNC is not one of the events the IRM lists as suspending it.
Can I still get tax refunds in CNC status?
No. The IRS states that if you are due a federal tax refund, it will apply it to your unpaid tax debt.
What triggers an IRS review of my CNC status?
The IRS states it may review your financial situation later and may resume collection if your ability to pay improves. It does not publish a list of specific triggers.

Is CNC Status Right For You?

Read what the IRS publishes about each program. Eligibility is determined by the IRS on your full circumstances.

Take the Quiz

Other Options

OIC

Taxpayers who cannot pay their full tax liability

Payment Plan

Taxpayers with steady income who can afford monthly payments

Penalty Relief

Situations where the same return type was filed on time for the prior three years and no penalty was assessed in that window — the timely compliance history the IRS tests for administrative relief

Pay in Full

Taxpayers who have the funds available now and want to stop interest and penalties from growing further

Short-Term Plan

Taxpayers who can pay the full balance within 180 days and want to avoid any setup fee

Guaranteed IA

Individuals whose income tax liability, excluding penalties and interest, is small enough to meet the published limit

Simple Payment Plan

Individual, out-of-business sole-proprietor, or non-trust-fund business taxpayers whose balance is at or below the published threshold

Full-Disclosure IA

Balances above the Simple Payment Plan's aggregate threshold

Appeals / CDP

Someone who disagrees with a specific IRS collection action — a lien filing, a levy, or a rejected/modified/terminated installment agreement

Innocent Spouse

A joint filer who did not know about, and had no reason to know about, errors the other spouse made on a joint return

Injured Spouse

A joint filer whose share of a joint refund was applied to the other spouse's separate debt — back taxes, child support, federal student loans, or other debts subject to offset

Bankruptcy

Understanding, in general terms, what the Bankruptcy Code says determines whether an income tax debt can be discharged

Details

Timeline

The IRS does not publish a decision time. It states the delay is temporary and that the account remains in that status until the financial situation changes.

Costs

No cost to request CNC status.

How the IRS decides

The IRS states it may temporarily delay collection until a taxpayer's financial situation improves, and that it may ask for a Collection Information Statement — Form 433-F, 433-A or 433-B — together with proof of financial status.

Sources

Last reviewed 2026-08-21. Sourced to primary IRS materials and editorially reviewed. Not reviewed by a tax professional. Not tax advice. Report a correction.