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Currently Non-Collectable Status

Currently Non-Collectible Status, or CNC, is a commonly used remedy to IRS problems when a taxpayer simply can’t pay his taxes, but, it’s not as simple as some think. You must prove you qualify. When the IRS determines that it is presently unable to collect taxes from a taxpayer it will place the taxpayer’s account in a “Currently Not Collectible” or “CNC” status. This means that the IRS will stop trying to collect the tax and all levies and garnishments must immediately cease. Generally, unless the taxpayer’s financial situation changes, the account will remain in CNC status
until the collection period expires. If the taxpayer’s financial situation improves the account will be taken off of CNC status and the IRS may begin to collect the taxes again. Anyone who can prove that he has no discretionary income might qualify for CNC status, however convincing, the IRS is far more difficult than most taxpayers would think. In-depth financial disclosures through a formal process must be made to the IRS and complex negotiations generally ensue.

Rhonda L. Russell, Principal / Russell Financial & Business Services / NIPR National License # 8728891
Bidwell & Russell Tax Defense, Ltd / Tax Attorney & IRS Audit Representatives
Tax and Estate Planning / Tax Debt Solutions