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.
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.
A special status the IRS grants to taxpayers who are unable to pay their tax debt due to financial hardship
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.
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
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.
At Valor Tax Relief, we specialize in getting qualified clients approved for CNC status quickly and effectively
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
Help you maintain compliance and avoid future issues
We communicate directly with the IRS to ensure the best possible outcome for you.
"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
No. CNC status pauses collections, but your tax debt and interest continue to accrue.
Yes. The IRS typically reviews your financial situation every 1–2 years to determine whether you still qualify.
Yes, self-employed individuals can qualify, provided you demonstrate financial hardship and file all required returns.
In many cases, the IRS may file a Notice of Federal Tax Lien, even if you are in CNC status.
If your income improves significantly, the IRS may remove your CNC status and resume collection actions unless another relief option is in place.
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.
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.
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.
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.
Reach out today for your free consultation and find out if CNC status is the right step forward.
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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