IRS Currently Not Collectible (CNC) Calculator
Determine eligibility for CNC status when unable to pay.
CNC Eligibility
Eligible:Likely Yes
Reason:Unemployed with no income recovery expected
Status:unemployed
CNC requires: income ≤ necessary expenses, no significant assets, documented hardship.
Financial Analysis
Income:$ 2500
Expenses:$ 2200
Surplus:$ 300
Annual Surplus:$ 3600
Non-Exempt Assets:$ 0
Negative surplus = hardship. IRS exempts basic living necessities (~$6,500).
Collection Potential
Debt:$ 35000
CNC:Zero collection
Potential:$ 0
If CNC, IRS suspends collection. Statute runs (10 years). Debt remains legally owed.
CNC Benefits
- Collection suspended (no levy/seizure)
- No monthly payment required
- Statute continues running
- Can rebuild financial situation
Collection suspended. No levies or seizures. Time to recover financially.
CNC Limitations
- Debt NOT eliminated - still owed
- Interest/penalties continue accruing
- Lien may still be filed
- Annual financial review by IRS
- Status can be revoked if income improves
Debt NOT eliminated. Interest continues. IRS reviews annually.
Documentation Required
- Form 433-A (Collection Information Statement)
- Proof of income (pay stubs, SS, pension)
- Proof of expenses (bills, statements)
- Asset documentation
- Bank statements (3 months)
Submit Form 433-A with all supporting documents to request CNC.
Recommendation
Likely eligible for CNC - submit Form 433-A with hardship documentation
CNC Key Points
- CNC: suspend collection
- Not debt forgiveness
- Hardship required
- Income ≤ expenses
- No significant assets
- Interest continues
- Annual IRS review
- 10-year statute runs
- Lien may still file
- File Form 433-A