Does Currently Not Collectible status eliminate my tax debt?

No. CNC status does not forgive, cancel, or eliminate your tax debt. It temporarily suspends collection activity while your financial hardship is recognized. The full balance continues to accrue interest and penalties. The IRS will periodically review your financial situation and resume collection if your ability to pay improves.

How do I apply for Currently Not Collectible status?

To request CNC status, contact the IRS at the number on your most recent notice or call 800-829-1040. The IRS will typically ask you to complete a Collection Information Statement — Form 433-F for individuals or Form 433-A for self-employed taxpayers — documenting your income, expenses, and assets. You must also have filed all required tax returns before CNC can be approved.

Can the IRS still file a tax lien while my account is in CNC status?

Yes. CNC status stops active collection enforcement like levies and garnishments, but the IRS can still file a Notice of Federal Tax Lien to protect its interest in your property while your account is in CNC. The IRS may also apply your future federal or state tax refunds to the balance even while in CNC status.

What is Currently Not Collectible status?