Currently Not Collectible (Temporary Delay of Collection)

Taxpayers facing severe financial hardship may request that the IRS temporarily delay collection and report the account as currently not collectible (CNC). If the IRS determines that a taxpayer cannot pay any of the tax debt, it may suspend collection actions until the individual’s financial condition improves. A CNC determination does not forgive the debt; penalties and interest continue to accrue, and the IRS may file a Notice of Federal Tax Lien to protect its interest in the taxpayer’s assets.

Before granting CNC status, the IRS may require a Collection Information Statement (Form 433‑F, 433‑A or 433‑B) and documentation of assets, income and expenses. Taxpayers must demonstrate that paying the tax would prevent them from meeting necessary living expenses. During the temporary delay, the IRS will periodically review the taxpayer’s ability to pay; if circumstances improve, collection efforts may resume. Taxpayers should contact the IRS at the phone number listed on their notice to discuss this option.

The IRS’s collection process (Topic No. 201) clarifies that CNC status is granted when a taxpayer cannot pay due to financial hardship; the collection period is delayed but not eliminated. The IRS may still file a federal tax lien while the account is suspended, and penalties and interest continue. If the taxpayer’s finances improve, they must make arrangements to pay the debt. Members of the Armed Forces may qualify for additional payment deferral provisions. Taxpayers should contact the IRS promptly to request CNC status and discuss other options such as installment agreements or offers in compromise.