Currently Noncollectible (CNC)
If you are unable to pay the delinquent amount owed by way of an installment agreement or an offer in compromise, we can request the IRS place your account on currently not collectible status (CNC). You will only qualify for CNC status if you have negative monthly cash flow.
WHAT DOES CNC STATUS DO FOR YOU?
CNC status removes your account from active collection efforts by the IRS and will remain in effect until your financial situation changes or until the tax liability runs out. It does not remove or eliminate your tax debt; it only puts it on hold. Your tax debt is still owed and will continue to accrue penalties and interest, and the IRS and FTB statute of limitations will continue to run during this time.
If your income increases to a level that makes it possible to make payments to the IRS, you’ll be notified by the IRS that collection activities on your delinquent account will be reinstated.
PLEASE NOTE: While you’re in CNC status, your credit rating may be negatively affected as the IRS will generally file a lien against your property.
If you are being audited or are having collections issues with the Internal Revenue Service, Franchise Tax Board or any other state or local tax authority, contact the tax attorneys at David Lee Rice, A Professional Law Corporation, at 310-402-2844 immediately.