Currently Not
Collectible
Currently Not Collectible
Last updated August 12, 2026
Currently Not Collectible status is often called CNC or hardship status. It lets the IRS pause enforcement for a while when a taxpayer has no ability to pay. The tax debt still exists. Interest and penalties continue to accrue as well. While your account stays in this status, enforced collection typically stops.
You may qualify for Currently Not Collectible status if paying your IRS debt would keep you from covering basic living expenses. Margolies Law Office helps individuals and business owners ask for hardship relief. The firm also helps stop aggressive IRS collection.
Currently Not Collectible, often referred to as CNC or hardship status, lets the IRS pause enforcement for a time. This applies when a taxpayer has no ability to pay. The tax debt still exists. Even so, active collection efforts are paused.
For many taxpayers, this relief provides immediate financial breathing room.
What Currently Not Collectible Status Can Do
When approved, CNC status can stop:
- Wage garnishments
- Bank levies
- Asset seizures
- Revenue Officer enforcement actions
Margolies Law Office works directly with the IRS. The office presents your financial information accurately. It also asks the IRS to place your account in hardship status on your behalf.
How the IRS Evaluates Hardship
To qualify, the IRS requires detailed financial disclosure. This includes a review of:
- Monthly income
- Necessary living expenses
- Bank balances
- Assets and equity
The IRS compares your expenses to national and local standards. It does this to decide whether you have any ability to make payments. Suppose your allowable expenses fully use up your income. If your assets also have little collectible equity, CNC status may be granted.
All required tax returns must be filed before hardship status will be considered. Margolies Law Office makes sure compliance issues are addressed before a request is submitted.
Important Limitations
Currently Not Collectible status is temporary. The IRS may look at your money situation now and then. Interest and penalties continue to accrue while you are in this status.
However, while your account remains in CNC status, enforced collection typically stops.
If the IRS has placed a wage levy on your account, it helps to know how to get a wage levy released. That knowledge may help restore your income while you are in hardship status.
Get Relief From IRS Pressure
A financial disclosure that is incomplete or improperly prepared can lead to denial. It can also lead to payment demands that are unrealistic. Margolies Law Office understands how the IRS evaluates hardship claims. The firm structures financial statements to reflect your true ability to pay.
Margolies Law Office has more than 10 years of experience, and it has helped over 450 clients. The firm helps taxpayers secure hardship protection and stop further enforcement.
If IRS collection is creating financial hardship, call (469) 626-7760 to schedule a confidential consultation with Margolies Law Office and explore whether Currently Not Collectible status is available in your case.
TESTIMONIALS
“ Andrew Margolies did a great job for my mom who had paid her taxes, but the IRS failed to associate the payment with her account. She kept getting letters demanding payment with accrued interest and fees even though they had cashed her check.
After Andrew started working on it, the letters stopped. We were notified there had been a credit to my mom’s account, and finally the payment was properly applied with a zero balance. She is even receiving a refund.
We’re very happy with Andrew and would highly recommend him.”
T B.
“I came to Andrew Margolies with a significant IRS issue that I had been losing sleep over for months. I spoke with Jennifer on the phone, got in the same day for a consultation, and had a full resolution within 2 business days for a reasonable price. Andrew did exactly what he said he was going to do and provided me with a thorough resolution.
Being 9 months pregnant, Andrew was extremely sensitive to my timeline urgency and was on the phone with me at 5pm on a Friday helping me with my case.
Before meeting with Andrew, I called around to 10 different offices. All of those interactions felt like a sales funnel and a money grab. I can’t explain the relief I have having chosen to work with Andrew and having a resolution within days. We’re absolutely thrilled with the value and the experience.”
C S.
“100% recommended. I had a problem regarding my tax return since the beginning of 2023 and had been trying to follow up myself until 2025 with no progress. I decided to work with Attorney Andrew and Jennifer and in less than a month my problem was solved.
Attorney Andrew is very knowledgeable with reasonable fees and Jennifer is very responsive to all requests and questions. Most importantly they have business ethics. I will not look further if I have any more tax problems.”