When you cannot pay, collection can pause.
If paying the IRS would leave you unable to cover basic living expenses, the IRS may place your account in currently not collectible status and hold off on levies. We document your finances and present the hardship case for you.
Illustration only. The IRS reviews your actual income, expenses, and assets, and makes the final decision.
Is this you?
Currently not collectible status is for people who truly cannot pay right now. It usually applies in one of these situations.
Income barely covers the basics
After rent, food, transportation, and health care, there is nothing left over for a tax payment.
A hard turn in life
A job loss, illness, divorce, or another change cut your income and left you behind.
A levy is on the way
A final notice arrived, and a levy on your wages or bank account could be next.
Retired or on a fixed income
Social Security or a pension covers your living costs, with no room for a monthly payment.
A pause, not a pardon.
Currently not collectible status stops the IRS from pressing for money you do not have. Some things stop, and others keep moving in the background.
What goes on hold
- Levies on wages and bank accounts
- Seizure of property
- Enforced collection while your finances stay the same
What keeps running
- Interest and penalties on the balance
- The ten year collection period, which CNC does not pause
- An annual bill from the IRS
- Refunds applied to what you owe
- A possible Notice of Federal Tax Lien
Many states have their own hardship status with different rules. We handle state accounts too.
The numbers tell the story.
The IRS decides based on a full picture of your finances, not on a letter or a phone call alone. That picture is built on a Collection Information Statement.
- Income, expenses, assets, and debts, reported on Form 433‑F or Form 433‑A.
- Living expenses compared with the IRS Collection Financial Standards.
- Proof such as pay stubs, bank statements, and monthly bills.
- Assets that could be sold or borrowed against are reviewed as well.
From hardship to a hold.
Five steps, with one point of contact the whole way through.
- 1
Free case review
We look at your notices, your income, and your living costs to see whether hardship status is realistic.
- 2
Build the financial picture
We gather your pay stubs, statements, and bills, and prepare the Collection Information Statement.
- 3
Measure against the standards
We compare your expenses with the IRS standards and document anything that falls outside them for a good reason.
- 4
Request the hold
With your power of attorney, we present the hardship case to the IRS and ask for release of a levy that is causing hardship.
- 5
Stay protected
We watch the annual notices, keep future returns on track, and plan the next step if your finances change.
What to know before you ask.
Knowing how the status works helps set the right expectations.
The balance keeps growing
The debt is not forgiven. Interest and penalties continue until the balance is paid in full.
A lien is still possible
The IRS may file a Notice of Federal Tax Lien to protect its interest, even while collection is on hold.
Status can change
There is no fixed end date. The IRS may review your finances later and resume collection if your ability to pay improves, or if new balances come up.
What we do for you.
An Enrolled Agent leads your case, with the same person handling it from the first call to the final result.
Complete, accurate financials
An incomplete statement is the most common reason hardship requests stall. We make sure nothing is missing.
Expenses counted correctly
We know how the IRS standards work and document the necessary expenses that belong in your budget.
One voice with the IRS
We handle the calls and letters, so you are not negotiating on your own.
A plan beyond the pause
If your situation improves, we help you move to a payment plan or an offer in compromise.
About hardship status.
The questions we hear most. Anything else, ask us during your free case review.
How long does the status last?
There is no fixed time period. The IRS may review your financial situation later and resume collection if your ability to pay improves.
Will the IRS keep my refund?
Yes. While you owe a balance, the IRS may apply your federal refunds to the debt.
Does the debt ever go away?
The IRS generally has ten years from the date a tax was assessed to collect it. CNC status is not one of the events that pause that period, so time keeps running while collection is on hold.
Is this better than an offer in compromise?
They solve different problems. CNC status pauses collection while you cannot pay, and an offer settles the debt for less when you qualify. We compare both during your review.
When things change.
Hardship status is often one chapter of the plan. These services handle what comes next.
Offer in Compromise
Settle eligible tax debt for less than the full amount owed.
View serviceRelated serviceInstallment Agreements & Payment Plans
Structured monthly plans negotiated with the IRS or the state.
View serviceRelated serviceWage Garnishment Release
Fast action to stop or reduce a levy on your paycheck.
View serviceCannot pay right now? Let us show the IRS why.
Tell us about your income and your bills. The first case review is free and confidential.
Free case reviewNo obligationOne point of contact