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Currently Non-Collectible (CNC) Status
Temporary Relief from IRS Collections

When you're facing serious financial hardship and cannot afford to repay back taxes, the IRS may place your account into Currently Non-Collectible (CNC) status. This designation temporarily halts IRS collection actions.

Learn About Currently Non-Collectible (CNC) Status

Watch our expert explain how Currently Non-Collectible (CNC) status works and how it can help you

This video provides an overview of the Currently Non-Collectible (CNC) status process and what to expect when working with Valor Tax Relief.

What Is Currently Non-Collectible (CNC) Status?

A special status the IRS grants to taxpayers who are unable to pay their tax debt due to financial hardship

How It Works

CNC is a special status the IRS grants to taxpayers who are unable to pay their tax debt due to financial hardship. While penalties and interest may continue to accumulate, the IRS suspends all active collection efforts.

Think of it as the IRS putting your case on hold until your financial situation improves
CNC status is not permanent — the IRS will review your financials periodically

Key Benefits

Stops wage garnishments and bank levies
Gives peace of mind during financial crisis
Buys time to explore long-term tax relief solutions
Protects your essential income and property

You May Qualify If You:

Cannot Cover Basic Expenses

Are unable to cover basic living expenses while paying your tax debt

In Compliance

Are in compliance with current tax filing obligations

No Significant Assets

Have no significant assets that can be liquidated

Note: You must also be able to demonstrate financial hardship through proper documentation. CNC status is not permanent — the IRS will review your financials periodically to determine if your situation has changed.

How Valor Tax Relief Helps

At Valor Tax Relief, we specialize in getting qualified clients approved for CNC status quickly and effectively

1. Assess Situation

Assess your full financial situation

2. Prepare Forms

Help gather and prepare IRS-required financial forms

3. Submit Request

Submit your CNC request and negotiate directly with the IRS

4. Respond to IRS

Respond to IRS inquiries and defend your hardship claim

5. Maintain Compliance

Help you maintain compliance and avoid future issues

We communicate directly with the IRS to ensure the best possible outcome for you.

What Our Clients Say

"I was living paycheck to paycheck and couldn't handle IRS pressure. Valor Tax Relief stopped the collections and gave me time to breathe. I'm so grateful."

Angela W.

Texas

Frequently Asked Questions

Does CNC status eliminate my tax debt?

No. CNC status pauses collections, but your tax debt and interest continue to accrue.

Will the IRS review my case again?

Yes. The IRS typically reviews your financial situation every 1–2 years to determine whether you still qualify.

Can I apply for CNC if I'm self-employed?

Yes, self-employed individuals can qualify, provided you demonstrate financial hardship and file all required returns.

Will the IRS file a lien?

In many cases, the IRS may file a Notice of Federal Tax Lien, even if you are in CNC status.

What happens if my income improves?

If your income improves significantly, the IRS may remove your CNC status and resume collection actions unless another relief option is in place.

What is Currently Non-Collectible (CNC) Status?

CNC is a special status the IRS grants to taxpayers who are unable to pay their tax debt due to financial hardship. While penalties and interest may continue to accumulate, the IRS suspends all active collection efforts.

Who may qualify for CNC status?

You may qualify if you are unable to cover basic living expenses while paying your tax debt, are in compliance with current tax filing obligations, have no significant assets that can be liquidated, and can demonstrate financial hardship through proper documentation.

What can CNC status do for you?

CNC status can stop wage garnishments and bank levies, give peace of mind during financial crisis, buy time to explore long-term tax relief solutions, and protect your essential income and property.

How can Valor Tax Relief help with CNC status?

We assess your full financial situation, help gather and prepare IRS-required financial forms, submit your CNC request and negotiate directly with the IRS, respond to IRS inquiries and defend your hardship claim, and help you maintain compliance and avoid future issues.

How do I get started with CNC status?

Reach out today for your free consultation and find out if CNC status is the right step forward.

Ready to Get Relief from IRS Collections?

Our team of experienced tax professionals is here to help. Contact us today for a free consultation about Currently Non-Collectible (CNC) status.

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