How Do You Request Currently Not Collectible Status with the IRS?

Quick overview

Currently Not Collectible (CNC) status is a temporary relief tool the IRS uses when a taxpayer’s verified monthly living expenses exceed their income and there is no realistic ability to pay the tax debt. CNC stops most collection actions—like levies and wage garnishments—giving you breathing room to stabilize your finances. It does not erase the debt, stop interest and penalties, or automatically remove a notice of federal tax lien (IRS, Get Help Paying Your Taxes).

(IRS source: https://www.irs.gov/individuals/get-help-paying-your-taxes)

Step-by-step: How to request CNC

1. Get the facts about your account

• Locate the IRS notice or bill that shows the account balance and the contact information. The IRS usually includes a phone number or a return address for collection issues on its letters.

1. Confirm you are current on filing requirements

• The IRS generally requires that you have filed all required tax returns for the years in question before it will consider CNC. If you have missing returns, prepare and submit them promptly.

1. Gather required documentation

• The IRS relies on a Collection Information Statement to evaluate hardship. Use Form 433-F (individual collection statement) in most cases; Form 433-B or 433-A may apply for businesses or certain situations. Typical documentation includes:
  • Recent pay stubs, unemployment statements, or proof of no income
  • Bank statements for the last 2–3 months
  • Monthly bills: rent/mortgage, utilities, insurance, child support, medical expenses
  • Proof of extraordinary expenses (medical bills, recent job loss notices)
  • Copies of filed tax returns
• See the IRS Collection Financial Standards for allowable living expenses (https://www.irs.gov/businesses/small-businesses-self-employed/collection-financial-standards).

1. Complete the collection form and a realistic budget

• Complete Form 433-F or the collection statement the IRS requests. Be honest and accurate. The IRS compares your disposable income to its Collection Financial Standards to determine if you truly have no ability to pay.

1. Contact the IRS Collections unit handling your case

• Follow the instructions on your IRS notice: either mail or fax the completed forms and supporting documents to the address/fax on the notice, or call the collections phone number provided. If you choose phone contact, be prepared to provide the same documentation in writing or electronically if requested.

1. Consider authorized representation

• If you prefer a tax professional to handle negotiations, submit Form 2848 (Power of Attorney) so the IRS can speak directly with your representative.

1. Wait for the IRS determination and follow-up

• The IRS will review your file. If it finds your allowable expenses exceed income, it will place the account in CNC. Processing time varies depending on workload and how complete your submission is. The IRS may request additional information.

What CNC actually does — and doesn’t — do

• Pauses most collection enforcement: CNC generally stops active levies, wage garnishments, and automated collection referrals while the designation remains in force.
• Does NOT remove the tax liability: Interest and penalties continue to accrue on unpaid tax balances (IRS, Get Help Paying Your Taxes).
• Does NOT automatically remove a Notice of Federal Tax Lien: A lien already filed remains unless released or withdrawn under separate rules.
• Is temporary and reviewable: The IRS can review your situation annually or when new information (like increased income or returns filed) appears. If circumstances improve, the IRS may resume collection or request a payment plan.
• Does NOT directly affect your credit score: CNC is an administrative status; unpaid taxes or a filed lien may indirectly affect credit.

(IRS source: https://www.irs.gov/individuals/get-help-paying-your-taxes)

How long will CNC last?

There is no guaranteed fixed term. The IRS commonly reviews CNC status annually or when it receives new information. You remain responsible for the tax until it’s paid, settled, or otherwise resolved (for example, through an Offer in Compromise or bankruptcy if eligible). Importantly, the IRS’s 10-year Collection Statute Expiration Date (CSED) continues to run while an account is in CNC; CNC does not pause the 10-year clock (IRS Topic No. 203).

(IRS topic: https://www.irs.gov/taxtopics/tc203)

Practical tips from experience

• Document everything: In my practice I’ve seen CNC requests fail mainly because people submit incomplete or inconsistent documents. Keep a clear paper trail for income, bank balances, and monthly obligations.
• Use realistic expense numbers: The IRS compares your declared expenses to its Collection Financial Standards (national and local). Expect examiners to question unusually high claims for discretionary spending.
• Don’t ignore notices: Even after CNC is granted you must remain in compliance with filing and future tax obligations. Respond promptly to IRS correspondence.
• Consider a partial-payment installment agreement if there is some disposable income. Converting a partial-payment plan to CNC is possible in certain cases — see our guide on how to convert a partial-payment installment agreement to CNC for details: How to Convert a Partial-Payment Installment Agreement to Currently Not Collectible Status.
• If you’re missing returns, prepare and file them before or along with your CNC request — the IRS is unlikely to grant CNC if filings are delinquent.

Who qualifies and common scenarios

Typical qualifying situations include:

• Recent job loss with no immediate prospects for similar wages
• Long-term disability or ongoing, substantial medical expenses
• Extremely low or zero income relative to basic living costs
• Situations where monthly necessary expenses exceed net monthly income after allowable deductions

Eligibility is fact-driven. The IRS examines both current monthly cash flow and the reasonable ability to pay over time.

For more detail on the documentation the IRS expects, see our guide: Currently Not Collectible Status: Financial Documentation the IRS Expects.

Common mistakes to avoid

• Sending only a single-page summary or an incomplete Form 433-F. The IRS expects supporting documents.
• Assuming CNC eliminates interest or penalties. They continue to accrue until the balance is resolved or reduced by another option.
• Overstating expenses or understating income. That can delay or derail approval and creates credibility issues with the IRS.
• Failing to maintain compliance with ongoing tax filings. New notices or returns can trigger a review and possible reopening of collection.

Alternatives to CNC

If CNC isn’t approved or you prefer a proactive repayment strategy, consider:

• Installment agreements (streamlined, standard, or partial-payment) — see our installments hub: Choosing Between an Installment Agreement and Currently Not Collectible Status.
• Offer in Compromise if you qualify and your debt is settled for less than the full amount.
• Bankruptcy in certain cases where qualifying tax debts may be dischargeable.

Each option has different qualifications and long-term consequences — get tailored advice before deciding.

Frequently asked questions

Will the IRS still levy my bank account after CNC is granted?

Generally no; CNC should stop active levies. However, previously executed levies might require separate action to be released, and older bank levies may still need to be resolved with the IRS or your bank.

Does CNC erase penalties and interest?

No. Penalties and interest continue to accrue until the debt is paid, settled, or otherwise resolved.

Can CNC be used for business tax debt?

Yes. Businesses can be placed in CNC if they demonstrate an inability to pay. Different collection forms (such as Form 433-B) may be required.

How often will the IRS check my finances?

Typically annually or when new information is received. The IRS may also check more frequently for suspicious changes in reported income.

Can I negotiate while in CNC status?

Yes. If circumstances change and you can offer some payment, you can propose an installment agreement or an Offer in Compromise. If you’re under a partial-payment plan and your situation worsens, you may request conversion to CNC.

Practical next steps checklist

• Locate your IRS notice and note the contact info.
• File any missing tax returns immediately.
• Gather pay stubs, bank statements, and bills for the last 2–3 months.
• Complete Form 433-F (or the form specified on your notice).
• Submit documents as instructed or call the collections number on the notice.
• Consider hiring a tax professional and file Form 2848 if you want representation.

Professional disclaimer

This article is educational and does not constitute individual tax or legal advice. Tax law and IRS procedures can change; check the IRS website for current details and consult a qualified tax professional for help with your specific case.

Authoritative references

• IRS: Get Help Paying Your Taxes (CNC & collection options) — https://www.irs.gov/individuals/get-help-paying-your-taxes
• IRS: Collection Financial Standards — https://www.irs.gov/businesses/small-businesses-self-employed/collection-financial-standards
• IRS Topic No. 203: Collection Statute Expiration Date — https://www.irs.gov/taxtopics/tc203