Currently Non Collectable

If your finances are such that you have no ability to make a payment to the IRS to repay your tax debt, you may qualify for a Currently Non Collectable or CNC status. You will have to provide the IRS with a complete financial statement and prove based on their standards, that you cannot make a payment.

This CNC status does not make your liability go away, and penalties and interest continue to accrue. The IRS will look at your income each year and if they determine that you then have an ability to pay, they will require that you begin to make payments at that time. After 10 years from the date of assessment , if the liability has not been paid, it is wiped out. (some exceptions to this time frame apply)

Again, this is something you can handle yourself, but having someone who is familiar with the IRS collection process can help you get the best possible arrangement. An Enrolled Agent can help you wade through the process. Knowledge about the IRS’ processes and procedures can really help you get the best resolution possible.

What ever you do, do not ignore notices you receive from the IRS. Respond as requested and get help from an Enrolled Agent if you want assistance is handling your IRS problems.