Currently Not Collectible
CURRENTLY NON-COLLECTIBLE STATUS (CNC)
Do you owe the IRS or State but have no disposable income to pay? If so you may qualify for Currently Non-Collectible status (“CNC”) ?
If you cannot pay off your balance in full you may claim hardship. By claiming hardship, you make payments based upon your ability to pay and not based upon the amount you owe.
By claiming hardship the IRS or state bases your payment amount on your ability to pay. They calculate your monthly disposable income by taking the amount you take home each month and subtracting out what they consider to be necessary and reasonable living expenses. If this calculation indicates you spend the same amount or a higher amount than you take home, the IRS or state will allow you to pay nothing; in essence, you are entering into a $0 installment agreement which is called a Currently Non-Collectible status (CNC).
Being in a CNC status takes the pressure off of paying back taxes and allows the taxpayer to stay up to speed on paying current and future tax obligations.
DMG Tax Relief knows what the IRS or state will and won’t permit. We will figure out whether you qualify for CNC, and more importantly for those taxpayers whose economic circumstances are changeable, figuring out whether you are better off economically to seek a CNC status.