There are times when taxpayers simply can’t afford to pay what they owe the IRS. Whether it’s due to job loss, illness, or overwhelming monthly expenses, the IRS recognizes that pursuing aggressive collection efforts in these situations may do more harm than good. That’s where Currently Not Collectible status—also known as CNC—comes into play.
At COTTS LAW – A Tax Resolution Law Firm, we help individuals facing real financial hardship request relief through CNC and keep the IRS from disrupting their lives while they recover.
What Does CNC Mean?
Currently Not Collectible status is a temporary form of protection from the IRS. When granted, the IRS agrees to stop all active collection efforts. That means no wage garnishments, no bank levies, and no forced collection on your account. You’re still responsible for the debt, and interest and penalties will continue to accrue, but the IRS will leave your income and property alone for the time being.
CNC isn’t a permanent solution—but it can be a vital pause button that gives you time to regroup, rebuild, and regain control over your financial life.
How Do You Qualify?
CNC status is based entirely on financial hardship. The IRS won’t consider this option unless your monthly income barely covers—or doesn’t cover—your necessary living expenses. Common situations that may qualify include unemployment, disability, fixed income reliance (such as Social Security), or significant medical or caregiving obligations. You must provide supporting documents including bank statements, income records, and a completed IRS financial disclosure form.
This review is not automatic, and the IRS will scrutinize every expense you claim. That’s why preparing a clear, well-documented request is essential—and why many people seek legal representation before applying.
A Real Example of CNC in Action
One client we helped, a father who had been laid off and was surviving on unemployment benefits, owed the IRS over $30,000. His mortgage, utilities, and basic expenses left nothing left over, and he had no assets to liquidate. With our guidance, he submitted the necessary documentation and was approved for CNC. IRS collections stopped immediately, giving him the space he needed to focus on finding new work and supporting his family.
The Role of Legal Guidance
Applying for Currently Not Collectible status isn’t just about filling out a form—it’s about knowing what to disclose, how to present it, and what to expect from the IRS in return. At COTTS LAW, we handle everything from the financial review to communicating directly with the IRS on your behalf. We also monitor your case over time, since CNC status must be reviewed periodically and can be revoked if your income improves.
Many people who qualify for CNC never apply—either because they don’t know it exists or because the process feels overwhelming. That’s where our team steps in. We help you get protected and stay protected.
Relief Starts With One Step
If you’re facing IRS debt and truly can’t pay right now, you don’t have to suffer through it alone. Currently Not Collectible status may offer the breathing room you need. Contact COTTS LAW – A Tax Resolution Law Firm today to find out whether you qualify and what your next step should be.
