If you cannot pay the IRS what you owe due to limited income or assets that cannot be liquidated, it may be possible to halt all collection actions through a Currently Not Collectible status. The IRS assesses a taxpayer’s ability to pay when determining eligibility for this status, prioritizing financial hardship over mere inconvenience.
Request IRS Currently Not Collectible Status
At Lothamer Tax Resolution, we understand that not every taxpayer fits neatly into traditional IRS relief programs like the Offer in Compromise or an Installment Agreement. Some individuals may hold assets that technically disqualify them from a settlement—such as real estate with no equity or retirement accounts they can’t access—but still lack the financial means to resolve their tax debt.
The most viable option is applying for IRS Currently Not Collectible (CNC) status. This special designation informs the IRS that pursuing collection would cause undue financial hardship. To be granted CNC status, individuals must demonstrate economic hardship through documentation such as bank statements and tax returns. Once granted CNC status, the IRS suspends collection activities like wage garnishments, levies, and liens, giving you critical breathing room without the stress of aggressive enforcement.
While this does not erase your tax debt, being placed in Currently Not Collectible status can give you valuable time to regain financial stability. Whether selling a property, securing new income, or restructuring your business or personal finances, this reprieve can be the turning point toward lasting tax relief.
If you feel trapped by a tax problem, we’ll do the heavy lifting. All you have to do is take the first step.
How We Can Help You in the Long Term
You may qualify for IRS CNC status if your monthly income is insufficient to cover essential living expenses like housing, food, or transportation. At Lothamer, we specialize in negotiating with the IRS to stop collections and secure your Currently Not Collectible designation as quickly as possible.
CNC status typically lasts one to two years, depending on your financial circumstances. During that time, the IRS will monitor your situation and may reassess your eligibility. The IRS periodically reviews your financial situation to determine whether you qualify for CNC status. That’s why our approach doesn’t end with temporary relief. Once IRS Currently Not Collectible status is granted, our team will help you plan for the long term—whether that means preparing for an Offer in Compromise, setting up a future Installment Agreement, or waiting out the IRS’s collection statute expiration date.
While in CNC status, any tax refund owed will be applied to outstanding tax debt. Our mission is to be your partner from start to finish. We help you stop IRS collection efforts and identify a permanent, realistic path toward resolving your tax issues for good.
Within the first 24–72 hours, we can do more than what most other tax firms do in several weeks.
Step
1
CALL OUR OFFICE To Learn More About Our Process For Getting Same Day Tax Help
For a reasonable fee we will call the IRS and Request a Stay on Collection, obtain transcripts as to years unfiled, balances due, and income reported to the IRS, and provide you with a consultation within three days with a licensed professional, CPA, or Enrolled Agent.
Step
2
MEET WITH A LICENSED CPA, PROFFESIONAL, OR ENROLLED AGENT and Get Your Roadmap to Resolution
Our meeting with you will be a virtual meeting, using our proprietary video conferencing software, performed in the privacy of your office, home, or vehicle, with a licensed professional, CPA, or Enrolled Agent to learn about our findings, discuss your options, and provide you with a plan to resolve your tax problem. At this meeting, we will give you an estimated cost for the services to carry out the plan developed.
Step
3
IMPLEMENT THE PLAN Developed in Step 2
Upon accepting the Terms & Conditions in our service agreement as outlined in Step 2, we will immediately go to work solving your tax problem. We will get you set up in our eResolution Client Portal, giving you access to critical deadlines and next steps to view the progress of your case.
FAQs:
IRS Currently Not Collectible (CNC) status is a temporary financial hardship designation. This means that the IRS has determined that attempting to collect taxes from you would create significant economic strain. While the tax liability remains, the IRS halts all enforced collection efforts—such as wage garnishments, bank levies, and property seizures—until your financial situation improves.
To qualify for IRS Currently Not Collectible status, your income must be too low to cover basic living expenses, and you must lack access to liquid assets. This includes situations where your only assets are encumbered, such as mortgaged property or retirement accounts, with withdrawal penalties. If repaying the IRS would leave you unable to meet basic needs, you may meet the criteria for CNC.
No. IRS Currently Not Collectible status is a temporary solution, not a permanent fix. It usually lasts one to two years, during which the IRS periodically reassesses your ability to pay. The IRS may resume collection efforts if your income increases or your financial condition improves. That said, CNC status can serve as an essential first step toward long-term tax resolution—such as pursuing an Offer in Compromise or reaching the statute of limitations on your tax debt.
Yes. Applying for IRS CNC status involves a detailed evaluation of your income, expenses, and asset profile. Working with a tax attorney can improve your chances of securing CNC status by navigating bureaucratic processes and ensuring all necessary documentation is prepared accurately. Any inconsistencies or omissions in documentation can delay or derail your request. At Lothamer Tax Resolution, our experts work directly with the IRS to present your case clearly and accurately, improving your chances of approval. Beyond securing your Currently Not Collectible designation, we develop a comprehensive strategy to help you achieve a permanent solution and financial peace of mind.