What Should I Do if I Can’t Afford to Pay the IRS in Texas?

If you owe the IRS but truly can’t afford to pay, you may qualify for Currently Not Collectible (CNC) status.

This program doesn’t erase your tax debt, but it does stop IRS collection efforts — including wage garnishments, levies, and aggressive letters — as long as you remain financially unable to pay. The IRS reviews your income, expenses, and assets to determine if forcing payment would cause undue hardship.

Key things to know about CNC status:

• It doesn’t eliminate the debt, but it does put a hold on collections.

• The IRS will periodically review your finances to see if your situation improves.

• Interest and penalties may continue to accrue.

For many people, CNC provides the breathing room they need to stabilize their finances while working toward a long-term solution like an Offer in Compromise or installment plan.

Because it requires detailed financial documentation, it helps to have an experienced tax attorney present your case persuasively.

At COTTS Law in Corpus Christi, attorney Daniel Cotts works directly with clients to request CNC status when appropriate, ensuring that the IRS recognizes genuine financial hardship. Call today for a consultation and protect your paycheck from IRS collection.