Too Broke for the IRS? How Current Not Collectible Status Can Give You a Breather

Too Broke for the IRS? How Current Not Collectible Status Can Give You a Breather

Let’s cut to the chase: IRS tax debt can feel like a weight you just can’t shake, especially if money is already tight. Between bills, rent, groceries, and everyday expenses, the thought of paying the IRS can feel impossible. That’s where Current Not Collectible (CNC) status comes in—it’s a lifeline for taxpayers struggling to make ends meet.

What CNC Status Actually Does

Here’s the real deal: if the IRS agrees that paying your tax debt would cause serious financial hardship, they can place your account in CNC status. This doesn’t erase what you owe, but it pauses collection actions like wage garnishments and bank levies, giving you time to catch your breath. Think of it as hitting the pause button on your IRS stress.

Even while in CNC, the IRS has 10 years to collect your debt before it expires. They can file a Federal Tax Lien to protect their interest, and any refunds you’re owed will still be applied to your balance. So while CNC gives relief, it’s temporary—like a financial timeout.

How to Qualify for CNC Status

CNC isn’t automatic. To qualify, you need to prove financial hardship by sharing detailed information about your income, living expenses, assets, and other debts. The IRS wants to see that your monthly income is less than what’s needed for basic living expenses.

Once approved, the IRS may check in periodically to reassess your situation. During this time, penalties and interest keep accruing, so CNC isn’t a permanent fix—it’s a pause to help you stabilize and plan your next move.

Why CNC Status Could Be the Relief You Need

If paying your taxes right now would make your life miserable or impossible, CNC status can be a lifesaver. It stops aggressive collection actions and gives you space to get back on your feet. It also opens the door to other IRS tax debt relief options, like installment agreements or an Offer in Compromise, once your finances improve.

Don’t Face IRS Tax Debt Alone

The IRS can be intimidating—but you don’t have to go it alone. At Milestone Tax Solutions, we help taxpayers like you navigate CNC status and other forms of IRS tax debt relief. We work directly with the IRS on your behalf so you can breathe easier and start regaining control of your finances.

If you’re feeling crushed by IRS tax debt, don’t wait for it to get worse. Call us today at 833-505-4403 to see how we can help you hit pause and get the relief you deserve.

Keywords: IRS tax debt, IRS tax debt relief, Current Not Collectible status, CNC status, tax hardship, unpaid taxes, IRS collection help

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