Currently Not Collectible Request
When the Internal Revenue Service (IRS) determines that it is presently unable to collect the taxes from the taxpayer through full payment, an Installment Agreement, or an Offer in Compromise, it will place the taxpayer’s account in Currently Not Collectible (CNC) status.
The IRS will not pursue collection activity (i.e. bank account levies and wage garnishments) against the taxpayer while the account is placed in Currently Not Collectible (CNC) status, but will file a Notice of Federal Tax Lien. Further, the 10-year statute of limitations on tax debt collection continues to run while the taxpayer’s account is in Currently Not Collectible (CNC) status. However, the IRS will continue to add penalties and interest to the amount due. In addition, the IRS may periodically review the taxpayer’s account to determine whether the taxpayer is able to begin making payments on the delinquent taxes.