Currently Not Collectible (CNC) is a temporary agreement from the IRS to stop attempting to collect your past due taxes. It can provide financial and mental relief from the constant pressure of owing the IRS money.
CNC status isn’t the right choice for every situation, but it does offer the following benefits:
No IRS Levies
IRS levies are one of the biggest concerns for people who owe back taxes. The IRS has the ability to seize many types of assets and income, including:
- A portion of your wages from every paycheck.
- The full amount of any bonuses or commissions you receive.
- A portion of certain Social Security benefits payments.
- The money in your bank account.
- The money in your retirement account.
- Your business assets.
As long as your account remains in CNC status, the IRS won’t issue any of these levies. However, they may keep your tax refunds and apply them to your outstanding balance.
Recent Comments