Currently Not Collectible Qualifier
Currently Not Collectible Qualifier
Currently Not Collectible (CNC) status pauses IRS collection when paying would leave you unable to cover basic living costs. This tool gives a rough read on whether you might qualify. Nothing is stored.
Rough estimate only. The IRS uses its own allowable-expense standards, not your actual spending, and reviews your assets too. A professional can confirm.
What Currently Not Collectible means
Currently Not Collectible, or CNC, is an IRS status that temporarily pauses active collection, including levies and garnishments, when you cannot pay your tax debt and still cover basic living expenses. The debt does not go away, and penalties and interest keep running, but the IRS stops trying to collect while you are in hardship.
How the IRS decides
The IRS compares your monthly income to your allowable living expenses. Importantly, it uses its own national and local expense standards, not simply what you actually spend, and it also looks at whether you have assets you could sell or borrow against. If, after allowed expenses, you have little or no money left to pay the tax, you may qualify. The tool above gives a rough read using your own expense figure.
How you request it
CNC is not automatic. You request it by giving the IRS a financial statement, usually Form 433-F or 433-A, that documents your income, expenses, and assets. Because the IRS applies its own standards and may push back, accurate documentation matters, and this is an area where professional help is common.
What happens after
CNC is a pause, not a cure. The IRS reviews your situation periodically and can resume collection if your income rises. Meanwhile the balance grows with interest, so many people use CNC as breathing room while they pursue a longer-term fix such as an Offer in Compromise or penalty abatement.
How this calculator works
Currently Not Collectible (CNC) status pauses IRS collection when paying would leave you unable to afford basic living expenses. This tool compares your monthly income to your necessary monthly expenses to estimate disposable income: little or none suggests you may be a CNC candidate, while a meaningful surplus points toward an installment agreement. The IRS applies its own National and Local expense standards and reviews your assets, so its determination can differ from a simple budget. CNC is requested with a financial statement on Form 433-F or 433-A.
Sources and references
These figures come from primary sources, which are updated as the rules change:
- IRS, temporarily delay collection (CNC)
- IRS, federal tax lien (can be filed during CNC)
- IRS Form 433-F, collection information statement
Frequently Asked Questions
What is Currently Not Collectible status?
Currently Not Collectible (CNC) is an IRS hardship status that temporarily stops active collection, such as levies and wage garnishments, when paying your tax debt would leave you unable to afford basic living expenses. The debt remains and interest continues, but the IRS pauses collection.
How do I qualify for Currently Not Collectible?
You generally qualify if, after the IRS allowable living expenses, you have little or no income left to pay the tax, and you do not have assets you could reasonably use to pay. The IRS uses its own expense standards rather than your actual spending, so the determination can differ from a simple budget.
Does CNC status remove my tax debt?
No. CNC pauses collection but does not erase the debt. Penalties and interest keep accruing, and the IRS can resume collection if your finances improve. Many people use CNC as temporary relief while pursuing a permanent resolution like an Offer in Compromise.
How do I apply for Currently Not Collectible?
You request CNC by submitting a financial statement to the IRS, typically Form 433-F or 433-A, documenting your income, expenses, and assets. The IRS reviews it against its standards. Accurate, well-documented figures improve your chances, which is why many people use a tax professional.
Will penalties and interest still grow during CNC?
Yes. CNC stops active collection but does not stop penalties and interest from accruing on the unpaid balance. That is why CNC is usually a temporary measure while you work toward a longer-term solution.
How long does Currently Not Collectible status last?
There is no fixed period. CNC continues while you remain in hardship, and the IRS reviews your situation periodically, often when your reported income rises. It can be lifted if your finances improve, so it is usually a temporary bridge to a permanent resolution.
Will the IRS still file a tax lien during CNC?
It can. CNC pauses active collection like levies and garnishments, but the IRS may still file a Notice of Federal Tax Lien to protect its interest, which can appear on public records even while collection is paused.
Does CNC stop a wage garnishment?
Generally yes. Once the IRS places an account in Currently Not Collectible status, it pauses active collection actions, including wage levies and bank levies, though penalties and interest continue to accrue on the balance.
Does CuraDebt determine CNC eligibility or file the forms, and is it a tax firm?
CuraDebt is a free service that reviews the information you submit and, where appropriate and permitted by law, matches you with independent, licensed providers for debt relief or tax resolution. CuraDebt is not a law firm and does not provide legal or tax advice. Results vary and are not guaranteed.
Related Resources
- All debt and tax calculators
- IRS penalty and interest calculator
- Offer in Compromise calculator
- IRS partial payment installment agreement
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