Segal, Cohen & Landis, P.C.

Stop IRS Collection When You Cannot Afford to Pay

IRS tax attorneys — Beverly Hills, CA. National representation.

Taxpayer calmly reviewing bills at a kitchen table in soft morning light — the breathing room Currently Not Collectible status provides

33+ Years IRS Experience

U.S. Tax Court Admitted

IRS Currently Not Collectible (CNC) status is a formal determination that a taxpayer cannot pay their tax debt without being unable to meet basic living expenses. When the IRS places an account in CNC status, all collection action stops — no levies, no garnishments, no liens from new action — and the account remains dormant until the IRS determines you have the financial ability to pay. For taxpayers in genuine financial hardship, CNC status can provide critical breathing room. Importantly, the 10-year collection statute of limitations continues to run while the account is in CNC status — meaning that if the statute expires, the remaining balance becomes legally uncollectible. Segal, Cohen & Landis helps clients qualify for, establish, and maintain CNC status as part of a broader resolution strategy.

How We Help

Our Approach to Currently Not Collectible Status Attorney

Hardship Analysis

CNC status requires demonstrating that your monthly income does not exceed your allowable monthly expenses as defined by IRS national and local standards. We analyze your financial situation, calculate the IRS's allowable expense thresholds for your location, and determine whether CNC is achievable.

Collection Information Statement Preparation

CNC status requires submitting a Collection Information Statement (Form 433-A for individuals or 433-B for businesses) with supporting documentation. These forms must be complete, accurate, and strategically prepared. We ensure every allowable expense is included and documented.

Ongoing Monitoring

The IRS reviews CNC cases annually. If your income increases, the IRS may remove CNC status and resume collection. We monitor your status and advise on compliance steps to maintain CNC as long as your financial situation warrants it.

Statute Strategy

CNC status can be part of a longer-term strategy where the goal is letting the 10-year collection statute run out. We analyze your CSED, project the timeline, and advise on whether a wait-out strategy is viable.

How It Works

The Resolution Process

Financial Qualification Analysis

We compare your income against IRS national and local expense standards to determine if you qualify for CNC.

Form 433-A/B Preparation

We prepare the Collection Information Statement with all supporting documents — bank statements, pay stubs, expense records.

IRS Submission

We submit the CNC request and handle all IRS correspondence. Collection activity is suspended while the request is under review.

Annual Review Prep

We help you prepare for annual IRS reviews to maintain CNC status as long as your financial situation warrants it.

Tax attorney reviewing a Collection Information Statement with a client across a desk — Every CNC request is prepared and negotiated by a licensed tax attorney — from hardship analysis to annual review.

Ready to Resolve Your Tax Problem?

Our attorneys have helped thousands of clients resolve IRS matters. Your consultation is free and confidential.

Schedule a Free Consultation Call (310) 285-3999

Common Questions

Frequently Asked Questions

Does CNC status eliminate my tax debt?+

No. CNC status pauses collection — it does not reduce or eliminate the debt. Interest continues to accrue. The debt can become uncollectible if the 10-year collection statute expires, but CNC alone does not resolve the balance.

Can the IRS still file a lien during CNC status?+

Yes. A Notice of Federal Tax Lien can be filed even if your account is in CNC status. Lien filing does not constitute collection action — it protects the government's interest without actively seizing assets.

How long can I stay in CNC status?+

As long as your financial situation doesn't materially improve. The IRS reviews CNC accounts annually. If your income increases above the allowable threshold, the IRS may remove CNC status and begin collection again.

Is CNC status right for me?+

CNC is right for taxpayers in genuine hardship who cannot pay without being unable to afford basic living expenses. For taxpayers with assets or reasonable income, OIC or installment agreements are typically better options. We evaluate all alternatives and recommend the best path for your specific situation.