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Currently Not Collectible (CNC)

Currently Not Collectible (CNC)

Currently Not Collectible (CNC) is a collection alternative that prevents tax authorities from enforcement usually carried out by bank levies, wage levies/garnishments and tax liens. CNC is a hardship status that is determined based on taxpayer assets, liabilities, income and expenses. If the collection of tax would create an inability to meet basic necessary living expenses, CNC will be granted. The tax authorities can revisit the taxpayer's financial situation in the future to determine if they still qualify for CNC or whether to remove them from CNC status if their finances improve.

 

A tax lien may be filed against a taxpayer in CNC status to protect the interests of the government. CNC status is an important tax settlement program that protects taxpayers from the burden of paying back taxes that would leave them unable to meet their basic living expenses.