Currently Not Collectible
IRS hardship status that stops collections while you recover.
Overview
Currently Not Collectible (CNC), also called Status 53, is IRS hardship protection. When we prove your allowable expenses meet or exceed your income, the IRS suspends active collection — no levies, no garnishments, no seizures — and the 10-year collection statute keeps running. Many CNC cases eventually expire without the debt ever being paid.
What's Included
- Form 433-F or 433-A hardship financials prepared by our team
- Automatic collection hold once CNC is granted
- 10-year collection statute (CSED) continues to run
- No monthly payment required while in CNC
- Annual IRS financial review — we handle it
Frequently Asked Questions
Do I still owe the tax debt if I'm placed in CNC?
Yes. CNC pauses collection but does not eliminate the debt. Interest and some penalties continue to accrue, but no active collection can occur while the status is in place.
How long does Currently Not Collectible last?
CNC has no fixed expiration. The IRS reviews your finances every 1–3 years. If your income increases, you may be moved to an installment agreement. If the CSED (typically 10 years from assessment) expires while you're in CNC, the debt is legally uncollectible.
Will the IRS still file a tax lien if I'm in CNC?
Yes — CNC does not prevent a Notice of Federal Tax Lien on balances over $10,000. We can request lien withdrawal or subordination in appropriate cases.
Can I qualify for CNC and Offer in Compromise?
Yes. Many hardship taxpayers use CNC to stop immediate collection, then file an OIC once the paperwork is ready. We routinely sequence these two programs together.
See our full Tax Resolution, Tax Prep & Bookkeeping FAQ.
Related Services
Currently Not Collectible Across Northeast Florida
We handle currently not collectible cases for taxpayers and small business owners throughout the Jacksonville metro. Choose your city for locally-tailored details, ZIP codes served, and city-specific FAQs.
Also serving all of Duval County, St. Johns County, Clay County, and Nassau County. See the full Jacksonville tax attorney overview.
Ready to talk about Currently Not Collectible?
Call now for a free case review. We'll pull your transcripts and show you exactly what your options are.