Currently Not Collectible (CNC) Status

The Currently Not Collectible (CNC) Status is an alternative to an Offer in Compromise for taxpayers who are either unable to pay off a settlement offer or who are recently unemployed.

Once the IRS declares a taxpayer currently not collectible, the IRS must stop all collection activities, including levies and garnishments. The IRS must send an annual statement to the taxpayer stating the amount of tax still owed. This annual statement is not a bill.

While in not collectible status, the 10-year statute of limitations on tax debt collection is still running. If the IRS cannot collect the tax within the 10-year statutory period, then the tax debts will expire. For this reason, taxpayers with a fixed income whose statute of limitations is expiring soon frequently have great success pursuing a CNC.