Save Your Funds: Declaring Financial Hardship to the IRS

You just can't pay the IRS. You want to stop the tax man from breathing down your neck, but you don't have one red cent to pay toward your tax debt. If you have no way to pay the IRS, it's up to you to declare Financial Hardship to temporarily hault collection efforts.


Try Currently Not Collectible (CNC) to Stop IRS Collections
The IRS cannot pressure you into a payment arrangement that would cause you to go without basic necessary living expenses. If there's no way you could both pay the IRS and pay for your necessities, you'll probably qualify for Currently Not Collectible (CNC) status.

Basic Needs Include:

• Rent/Mortgage Payments
• Food Expenses
• Utilities
• Gas/Transportation
• Medical Bills/Expenses
• Basic Clothing

Credit card payments, private school tuition, and other "luxuries" don't count. Not to mention the fact that you can't go over the National Standards for your basic needs without the IRS questioning your spending.

Don't see this as an opening to get out of paying the IRS. Currently Not Collectible (CNC) status is for people that are truly in need.

Who Qualifies for Currently Not Collectible Status (CNC)?

According to a Report issued by the IRS on January 6, 2009, IRS employees will have greater authority to suspend collection actions in certain hardship cases where taxpayers are unable to pay. This includes:

• Taxpayers that have recently become unemployed
• Taxpayers that rely on Social Security or Welfare Income
• Taxpayers facing devastating illness or significant medical bills

Remember, This is Temporary

Currently Not Collectible status is not a permanent solution for solving your Tax Debt. Your case will be reactivated if there are any indications that your financial situation has improved.

Don't Let Your Case Be Denied


IRS collection efforts continue to increase exponentially every year. The IRS is cracking down on those who owe, and it's harder to get approved for Currently Not Collectible than it was before. Consider working with a professional to increase you chances of being approved for CNC status with the IRS.