IRS Currently Non Collectible Status (CNC)

What to do if you want CNC Status:

  1. First of all, REMEMBER THAT IF IRS IS PRESSURING YOU TO PAY THEM, THAT IT IS JUST A MATTER OF TIME BEFORE THEY WILL BEGIN TO SEIZE YOUR BANK ACCOUNTS AND YOUR PAYCHECKS AND ANY OTHER CASH ACCOUNTS THEY CAN FIND, INCLUDING RETIREMENT ACCOUNTS. Your cars and other assets are usually not at risk.
  2. Be sure to download my Wage Levy Package . Look above and in the right hand column.
  3. Fill out my IRS Wage Levy Survey. It gives me a lot of info I can use to prepare for talking to you.
  4. I will give you plenty of information whether you choose to use my services or not.
  5. If you decide to use me to help you get CNC status, you can then follow the link below and pay by credit card or debit card. I charge a flat fee of $695 for this service.
  6. If you need more than just CNC status, you can refer to My Fee Page and compute the cost.
  7. My payment policy requires a 50% up-front payment made on a debit or credit card.
  8. I prefer this arrangement because it gives you as the client the ability to cancel the charge if I am unable to get your levy released. My policy is to completely refund your payment if, for any reason at all, I am unable to get IRS to release your levy, but this arrangement will give you more control and some additional comfort.
  9. You can call me and we will discuss your IRS problems.
  10. I'll give you as much time on the phone as you need. You can ask as many questions as you want and I'll answer them all (if possible) even if I know you will not become my client.

If you and I talk about it and you decide to pursue it, I guarantee that I will have you classified into IRS Currently Non Collectible (CNC) status if you qualify for it, or you will not have to pay me a dime. Period. IRS CNC Status is not like an IRS Offer in Compromise, which wipes away all your tax debt.

As the name "Currently Not Collectible " implies, some taxpayers aren't able to pay IRS anything at all on a monthly basis without incurring financial difficulties that would be so tough that even IRS wouldn't want to pursue collection.

Here, the same financial information is provided to IRS that is necessary for the IRS Offer in Compromise and the Installment Agreement. However, in this case the information shows that the taxpayer's financial condition is so bad that (s)he cannot afford even a small monthly payment.

Like the IRS Installment Agreement, once the taxpayer is declared uncollectible, IRS will typically allow him or her to remain classified in this manner for eighteen months to two years or more. This will allow the taxpayer some time to get into a better financial position so that payments can be made at a later time. IRS is not willing to completely write off and eliminate the back taxes like they would do through an Offer, but at least the taxpayer gets some breathing room.

Unfortunately, IRS will continue to accrue interest and add it to the amount owed. So at the end of the uncollectible period the taxpayer will owe more than (s)he did when originally classified as uncollectible.

At the end of the uncollectible period, IRS will want to re-evaluate your financial position, so they will discuss with you all of your income and expenses. If the figures show that you have positive cash flow and can afford to make monthly payments, then IRS will set you up on a monthly Installment Agreement. If, however, your monthly expenses are equal to or greater than your monthly income, then IRS will tell you that you are still deemed uncollectible and will not be required to make any payments.

Like the Installment Agreement, my fee for successfully negotiating with IRS to classify taxpayers into CNC Status is $695, regardless of the amount of time it takes me to finalize the agreement with IRS. Flat rate.