{"id":1221,"date":"2022-09-02T16:34:37","date_gmt":"2022-09-02T16:34:37","guid":{"rendered":"https:\/\/taxreliefprofessional.com\/?page_id=1221"},"modified":"2023-10-20T17:18:58","modified_gmt":"2023-10-20T17:18:58","slug":"currently-not-collectible-status","status":"publish","type":"page","link":"https:\/\/taxreliefprofessional.com\/currently-not-collectible-status","title":{"rendered":"Currently Not Collectible Status"},"content":{"rendered":"\n
For many individuals experiencing financial hardships, the words “Currently Not Collectible” (CNC) can sound like a sigh of relief when dealing with back taxes owed to the IRS. This status means the IRS acknowledges that you can’t currently afford to pay off your debt without causing substantial financial distress. As a result, the agency will halt its collection efforts temporarily. However, before considering this as a solution, it’s crucial to understand the potential dangers and long-term implications.<\/p>\n\n\n\n
While the CNC status stops aggressive collection actions and gives taxpayers some breathing room, it doesn’t eliminate the tax debt. The amount owed, including interest and penalties, will continue to accrue. This means you could find yourself in a deeper financial hole in the future.<\/p>\n\n\n\n
CNC is not a permanent status. The IRS will routinely review your financial situation, and if they determine that your income has increased or you can afford to make payments, they will restart their collection efforts. This might lead to wage garnishments, liens, and levies.<\/p>\n\n\n\n
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