Currently Not Collectible (CNC) means exactly what it sounds like. The IRS will not be able to collect any owed taxes, interest or penalties. Your account is put on “hold” and the IRS ceases to enforce collection while your account is in CNC status. However, penalties and interest continue to accrue. In addition, the IRS will keep any tax refunds you might otherwise be entitled to in future years and will apply them to the outstanding balance. While CNC is not for every situation, there are circumstances where CNC may be the best option.
You may be eligible for CNC if:
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Your income covers no more than your necessary living expenses
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You have no assets worth levying
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Contact us to help you evaluate whether you are a good candidate for Currently Not Collectible Status.
