Currently Not Collectible

The first thing to do is to check the return address to be sure it’s from the Internal Revenue Service and not another agency.

If it’s from the IRS, the notice will inform you that the IRS has placed your tax account in a status called currently not collectible (CNC). If you want more details about your tax account, you can order a transcript.

• File tax returns for prior years (if you were required to file a tax return), even if you can’t pay the amount you owe right now.
  • If you meet the requirements, you might be able to have your tax return prepared for free at a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE)
  • The IRS may place your accounts in CNC status if you have unfiled tax returns and are in a hardship situation.
• Continue to file your tax returns on time even if you can’t pay. This will prevent late-filing penalties.
• Gather your information to verify your income, expenses, and any debts you owe (loans, etc.). You may need to provide the IRS this financial information so it can decide whether to grant your request.

• Request a conference with the IRS Collection manager. IRS employees are required to give you the name and phone number of their supervisor.
• Hire an attorney, certified public accountant (CPA), or enrolled agent (EA) to represent you. If your income is below a certain level, you may qualify for assistance from a Low Income Taxpayer Clinic.
• Appeal certain collection actions the IRS is taking or proposing. See Publication 1660, Collection Appeal Rights.

• The IRS may ask you to file any past-due returns.
• The IRS may ask you to complete Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals, or Form 433-F, Collection Information Statement, and/or Form 433-B, Collection Information Statement for Businesses, before making any collection decision.
• The IRS may require documentation to support items listed on your Collection Information Statements.
• The IRS will continue to charge monthly late payment penalties and interest on your account.

• The IRS will keep your tax refunds and apply them to your debt.
• You can still make voluntary payments.
• The IRS shouldn’t levy your assets or income.
• The IRS may file a notice of federal tax lien (NFTL). The filing of an NFTL may affect your ability to sell property or other assets.
• The IRS may contact you to update your financial information to be sure your ability to pay hasn’t changed.

If your account is placed in CNC status and the IRS sends you a notice about your tax bill, call the number on the notice to discuss your financial situation. The IRS will take your updated information and decide if you still can’t pay your IRS debt and meet your living expenses. Make sure you have all the information about your income and expenses before you call.