QUALIFICATION REQUIREMENTS
IRS Currently Not Collectible (CNC) status is not guaranteed for all taxpayers. To qualify and maintain CNC status, you must: (1) be current with all required tax return filings; (2) demonstrate financial hardship through IRS Form 433-F or 433-A showing that your allowable monthly expenses meet or exceed your monthly income; (3) remain compliant with all future filing and payment obligations during the CNC period; and (4) not incur new tax debt. The IRS reviews CNC status periodically and may terminate it if your financial situation improves or if you fail to remain compliant.
WHAT CNC STATUS DOES AND DOES NOT DO
What CNC Does: Currently Not Collectible status temporarily suspends active IRS collection activities, including levies on bank accounts, wage garnishments, and further collection notices. While in CNC status, the IRS will not pursue forced collection action as long as you remain compliant with filing and payment requirements.
What CNC Does NOT Do: CNC status does NOT eliminate, reduce, or forgive your tax debt. The full amount you owe remains due and continues to accrue interest (and potentially penalties if applicable). The IRS will automatically apply any future tax refunds to your outstanding balance while you are in CNC status. Federal tax liens that have been filed will remain in place. CNC is a temporary suspension of collections, not debt forgiveness.
TAX REFUND OFFSET
While in CNC status, the IRS will intercept and apply all federal and state tax refunds to your outstanding tax debt. This means you will not receive refunds until your debt is paid in full. For some taxpayers, this offset may exceed any benefit gained from avoiding monthly payments. TaxDelete's service helps protect your bank accounts and wages, but it does not prevent refund offsets.
COLLECTION STATUTE EXPIRATION DATE (CSED)
The IRS generally has 10 years from the assessment date to collect unpaid tax debt. While in CNC status, the CSED continues to run in most cases. However, certain actions can toll (pause) or extend the CSED, including: filing for bankruptcy, submitting an Offer in Compromise, requesting a Collection Due Process hearing, living outside the United States for 6 months or more, or entering into an installment agreement.
WHAT TAXDELETE PROVIDES
TaxDelete provides document preparation services only. For a flat fee of $149, we help you complete IRS Form 433-F (Collection Information Statement) and prepare a submission packet using the same standards the IRS uses internally.
What We Are NOT: TaxDelete is not a law firm, certified public accounting (CPA) firm, enrolled agent, or tax relief company. We do not provide legal advice, tax advice, or representation before the IRS. We do not negotiate with the IRS on your behalf. All final decisions regarding CNC status are made solely by the IRS.
NOT AFFILIATED WITH THE IRS
TaxDelete is a private company and is not affiliated with, endorsed by, or connected to the Internal Revenue Service (IRS) or any government agency. All IRS forms, publications, and information are publicly available free of charge at www.irs.gov.
Last Updated: November 2025