Earn IRS CNC Status: How to Overcome Economic Hardship

Sometimes, people simply fall on hard times: paying rent, buying groceries, and keeping the lights on becomes not just difficult, but near impossible. The IRS can often make these trying times even harder: demanding back taxes, imposing fines, and giving you yet another expense that you just can’t afford at the moment. Fortunately, if you can get IRS CNC status, you could push back your deadline to pay by months, or even years.

What is IRS CNC Status?

CNC stands for currently not collectible, meaning you cannot afford to repay your tax debts at the moment because doing so would cause significant economic hardship for your household. When CNC status is granted, the IRS puts your account on hold and will not attempt to collect any taxes or penalties you may owe.

To be eligible for CNC status, you must provide the IRS with a financial statement that proves your household income, as well as all your monthly living expenses. If the IRS sees that your income is not enough to cover your expenses as well as your tax obligations, then they may agree to mark your account as CNC.

Keep in mind, the IRS has set maximums – called “Collection Financial Standards” – for how much you can pay in living expenses in order to qualify for CNC. Your car payment, utilities, rent, food, clothing and other expenses can’t cost more than a certain amount (the amount is based on your location and the number of people in your household).

The amount of time that you can claim CNC status is dependent on your financial situation, and you are required to file your income taxes annually and on time to continue to qualify.

Need IRS CNC Tax Relief?

Are your tax obligations too much? Don’t let the IRS make life even harder for your family. Schedule a free consultation with Five Stone Tax today, and we’ll help you file for IRS CNC status, so you can use your income for what really matters.

Five Stone Tax
by Five Stone Tax

Five Stone Tax is America’s trusted tax adviser, offering full-service tax solutions with the goal of making sure all of our clients pay the lowest amount of taxes legally possible. As the most effective tax representation company in America, our team consists of the best Property Tax Consultants, Tax Attorneys, Enrolled Agents, case managers, and administrators in the industry.

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