IRS Currently Not Collectible Status
Protect Your Property Through IRS Hardship Relief
Should You Pursue IRS Currently Not Collectible Status?
What Is IRS Hardship (Currently Not Collectible) Status?
The IRS Currently Not Collectible (CNC) status, also known as Status 53, is a temporary relief option for taxpayers who can’t afford to pay their tax debt without facing significant financial hardship. In simple terms, it’s often referred to as being in “IRS hardship status.”
When you apply for CNC status, the IRS reviews your financial situation to determine whether paying your taxes would leave you unable to cover basic living expenses. These essential costs include reasonable amounts for housing, food, utilities, transportation, medical care, and other necessities. Each case is evaluated individually, based on your income, household size, and overall financial condition.
Our team of IRS tax specialists can review your situation to see if you qualify for Currently Not Collectible status and help you decide if this is the best solution for your circumstances.
Why the IRS Statute of Limitations and Expiration Date Matter
When determining whether an IRS hardship program is the right solution, one of the first things to review is the collection statute expiration date (CSED) on your tax debt. This date marks the end of the period during which the IRS can legally collect what you owe.
Under federal law, the IRS typically has 10 years from the date your tax return was filed or assessed to collect unpaid taxes. Once that 10-year window closes, your tax liability expires—meaning the IRS can no longer pursue collection through levies, liens, or garnishments.
If you’re nearing the end of that timeframe, applying for IRS Hardship or Currently Not Collectible (CNC) status can be a smart and effective strategy. This status temporarily suspends IRS collection efforts, giving you protection and peace of mind while the statute of limitations continues to run.
For taxpayers struggling with serious financial challenges, this approach can provide the critical breathing room needed to stabilize your finances until the debt officially expires. Our experts can help determine how close you are to your CSED and whether IRS hardship relief is the best path forward for your situation.
How to Apply for IRS Hardship (Currently Not Collectible) Status
When you work with our team, your dedicated Tax Relief Specialist will carefully assess your financial situation and present evidence to the IRS showing that you’re unable to make any payments without serious financial strain.
You’ll need to provide documentation of your income, expenses, assets, and liabilities. If required, we’ll help you complete the Collection Information Statement (Form 433) and ensure every detail is accurate. Filing all past-due and current tax returns is essential, even if you can’t pay right now. It demonstrates compliance and prevents additional penalties.
Once your hardship case is submitted, the IRS wants to see that you’ll stay compliant moving forward. We can help adjust your withholdings or set up quarterly estimated payments if you’re self-employed.
While not everyone qualifies for Currently Not Collectible status, it’s often a strong option for taxpayers with limited income and no asset equity. If CNC status isn’t the best fit, we’ll explore other solutions such as an Offer in Compromise or a payment plan, always aiming for the outcome that brings you the greatest relief.
1. What are the benefits of IRS Currently Not Collectible status?
2. What are the drawbacks of IRS uncollectible status?
3. What is the difference between IRS Currently Not Collectible status, a settlement, and an installment agreement?
An Offer in Compromise (OIC) is a settlement program where you negotiate to pay less than the full amount owed—often based on your ability to pay and asset value.
An installment agreement allows you to pay your balance over time in affordable monthly payments. Each option has its own requirements and benefits, and the best choice depends on your financial situation and long-term goals.
4. What qualifies as economic hardship?
To evaluate this, the IRS compares your income and household size against their allowable living expense standards. If you have little to no disposable income after reasonable expenses, you may qualify for CNC (hardship) status.
5. How can I apply for IRS Currently Not Collectible status?
Once the IRS reviews your financial documentation, they decide whether you meet the hardship criteria. Professional guidance can help ensure your paperwork is accurate and that you include all allowable expenses to strengthen your case.
6. How long can I stay in uncollectible status?
If your financial hardship continues until the 10-year statute of limitations expires, your debt may be permanently uncollectible and effectively written off by the IRS.
M7 Tax Experts for IRS Hardship Help
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