Being placed on an IRS Currently Not Collectible (CNC) status (or currently not collectible) means that the IRS has determined that you cannot afford to pay the tax debt at the present time by payment in full, through an installment agreement or by way of an Offer in Compromise. Once a taxpayer is placed on CNC status, the IRS will suspend its collection activities (must immediately stop any wage garnishment or bank levy), but penalties and interest will continue to be added to the tax debt. If a taxpayer’s financial situation improves, the account will be taken off CNC status and the IRS can begin collecting on the tax debt through full payment or an installment agreement.

To be placed on a CNC status with the IRS, an IRS tax attorney will assess your financial situation and if qualified, determine sufficient financial hardship exists by showing there is no disposable income at the end of each month. A tax attorney in Orange County will submit pertinent financial documentation to support an IRS finding of placing a taxpayer on a CNC status. It is crucial that your CNC paperwork is submitted properly by an experienced Orange County tax attorney or the result could mean a rejection of your submission or even worse, you may be forced to pay more than necessary.  Please call Delia Law for a no-cost tax attorney consultation at (619) 639-3336. We look forward to helping you.

Related Pages

IRS Tax Relief

Offer In Compromise – IRS Settlement

IRS Interest and Penalty Removal

Innocent Spouse Relief

IRS CURRENTLY NOT COLLECTIBLE ATTORNEY IN ORANGE COUNTY, CARLSBAD, DEL MAR, SOLANA BEACH, ENCINITAS, RANCHO BERNARDO, ESCONDIDO, OCEANSIDE, AND CHULA VISTA