IRS Non Collectible Status

If you have barely enough money each month to pay your necessary living expenses such as housing, medical, transportation, food and clothing, the IRS will consider making your account Currently Not Collectible (CNC). Examples of taxpayers who are eligible for Currently Not Collectible status are taxpayers that are living paycheck to paycheck or surviving on unemployment, or single parents who have household expenses that exceed their monthly income.

Once your account is classified as Currently Not Collectible, the IRS will not issue wage or bank garnishments.  However, before making an account Currently Not Collectible, the IRS will confirm that you are not able to pay a monthly installment payment and that you are not a candidate for the Offer in Compromise program.

Basically, the IRS Non Collectible Status will make your account inactive and the IRS will stop pursuing you for back taxes.  If your finances improve, it is possible for the IRS to begin collection activity sometime in the future (usually three years).  During your initial consultation, this program will be explained in detail as it pertains to your individual circumstances. Contact TaxFirm.com for more information on the Non Collectible Status option.