If paying an IRS balance would leave you unable to cover basic living costs, the IRS may agree to pause collection. The IRS calls this "temporarily delaying the collection process," and its account code is usually described as currently not collectible, or CNC, hardship status. It can provide breathing room, but it does not erase the debt, and it is not automatic.
How hardship is judged
The IRS page on delaying collection says the main condition is financial hardship that prevents payment. It sets no income cutoff or asset test. Instead, the IRS asks for a financial picture and looks at whether you can pay reasonable basic living expenses and still have anything left for the tax.
You may be asked to complete a collection information statement, which is Form 433-F, Form 433-A (for wage earners and the self-employed) or Form 433-B (for businesses), plus documents that verify income, monthly living expenses, bank accounts, property and other assets. Before it will consider CNC, the IRS may ask you to file any past-due returns and may expect you to be current on estimated payments. If your finances show you can pay something, the IRS may offer an installment agreement or suggest an offer in compromise instead.
What CNC does
When an account is in CNC status, the IRS generally does not levy wages, bank accounts or other assets. For many people, that is the real value of the status.
What CNC does not do
- It does not cancel the debt. The IRS states plainly that the debt is not forgiven.
- It does not stop interest or penalties. They continue to accrue until the balance is paid in full, so the balance can be larger when the status ends.
- It does not prevent a federal tax lien. The IRS may file a Notice of Federal Tax Lien to protect its claim against your property. See IRS liens and levies.
- It does not keep your refund. Any federal refund you are due can be applied to the unpaid balance.
- It is not a permanent state. The IRS says there is no fixed time period and it may review your financial situation from time to time.
- It generally does not pause the 10-year collection period. The IRS's list of events that suspend or extend the collection statute (offers, hearings, bankruptcy and similar events) does not include CNC, so the clock generally keeps running. See statute of limitations.
Passports and other side effects
The IRS can certify a "seriously delinquent" tax debt to the State Department, which can lead to a passport being denied or revoked. The threshold is adjusted for inflation each year and the IRS lists it as $66,000 for 2026, including penalties and interest. The IRS has said it will not certify accounts in currently-not-collectible hardship status, accounts with pending installment agreement or offer requests, or accounts where an identity theft or bankruptcy situation applies, among other exceptions. Rules and exceptions change, so check the current IRS page.
How to request CNC
Call the number on your bill or notice and explain that you cannot pay because of financial hardship. Be ready for questions about income, rent or mortgage, utilities, food, insurance, child care, medical costs and transportation. Have the financial statement and supporting documents ready, because the IRS will ask for them. If you are seeking help with an urgent problem, such as a pending levy that would cause an immediate hardship, the Taxpayer Advocate Service may be able to help.
Common mistakes
- Treating CNC as debt forgiveness and forgetting that the balance still grows.
- Overlooking unfiled returns, which can delay or prevent hardship status.
- Providing incomplete budgets or documents that do not match your bank records.
- Not telling the IRS when your income improves and then being surprised by a refund offset or renewed collection.
How we can help
We can prepare the financial statement, compare CNC with a payment plan or offer in light of your actual budget, contact the IRS on your behalf with a power of attorney, and calendar the date when a review might occur. We cannot promise the IRS will agree that you meet its hardship standard.
See tax debt relief options for the full comparison, or contact us.
Frequently asked questions
Is CNC the same as the IRS forgiving my tax debt?
No. The IRS says the debt still exists and the account is only reported as currently not collectible until your financial condition improves.
Does CNC affect my credit?
The IRS notes that a federal tax lien may still be filed during CNC and that a lien may affect your ability to get credit. The IRS also says a lien no longer appears on the major credit reports, but it can still be a public record and complicate a sale or refinance.
Can the IRS end CNC status?
Yes. The IRS may review your finances periodically and resume collection if you can afford to pay.
Do I need to file returns while in CNC?
Yes. The IRS expects you to stay current on filing and payments.
What if I disagree with the IRS decision?
Ask the IRS about the next steps in writing, and consider the Taxpayer Advocate Service or a Low Income Taxpayer Clinic if you face an immediate hardship.
Official sources
- IRS: Temporarily delay the collection process
- IRS: Topic no. 201, The collection process
- IRS: Time IRS can collect tax
- IRS: Revocation or denial of passport in case of certain unpaid taxes
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.