Currently Non-Collectible Status
A taxpayer is eligible for Currently Non-Collectible (CNC) status when the IRS recognizes that a taxpayer’s gross monthly income is lower than their allowable expenses under the IRS financial standards. As such, your financial records prove that you are unable to pay the IRS, and therefore you are “currently not collectible.” Some of the information that the IRS will require from you are your income statements for the past 3 months, living expense statements for the past 3 months, a list of all assets (real property, bank accounts, investment portfolios, vehicles, 401K accounts, and life insurance) and the fair market value of the assets. Once the IRS puts you in CNC status, they will no longer be able to pursue collection activity for, on average, an initial period of 2 years and thereafter they will do a periodic review of your situation to determine if you are still in CNC status. We can assist you with proving to the IRS that you are currently not collectible.