Currently Not Collectible Status

Some taxpayers may find themselves in a current financial hardship where they’re simply unable to pay anything toward their back tax liability. When you have to constantly deal with the payment demands brought on by the IRS or the State of Michigan, it can feel stressful, shameful, and frustrating. You may feel as if you’re stuck struggling to choose between paying off your debt and simply surviving. Luckily, there is hope for your situation.

The IRS has the ability to put you into a “currently not collectible” (CNC) status or “hardship status”, whereby the IRS removes a taxpayer´s account from active collection efforts. Some examples of hardship may include a layoff, temporary illness, or even just living on a fixed income with substantial equity in your home. Unless the taxpayer’s financial situation changes, the account will remain in CNC status until the tax liabilities expire due to statute of limitations.

If you feel you’re stuck in a financial situation where you’re unable to pay your back taxes without taking on financial hardship, our tax experts can determine if you meet the IRS’ requirements to be placed into CNC status which will free you from constant harassment and give you more time to pay off your debts. To find out if you qualify for currently not collectible status, contact us and set up a free consultation.

Charlotte R.
Disabled University Employee
Waterford, Michigan
Offer in Compromise & Currently Non-Collectible Status
6 Months
The taxpayer owed the IRS from tax debts 2004-2006 from sale of real estate totaling close to $184,500. Settlement offer was accepted for only $100. With a savings of $184,400, she paid close to 0% of the original amount owed.
Owed: $184,500 Settled: $100

Steven K.
Real Estate Professional
Warren, MI
Currently Non-Collectible Status
Steven K., a self-employed real estate professional had not filed tax returns for 2007 through 2011. In addition, he owed over $80,000 of income tax for the years 2002 through 2006. The IRS Revenue Officer sent a wage levy to his employer and filed tax liens against all his real estate. The Franskoviak team of tax specialists went right to work, prepared the unfiled tax returns, and got the levy released from his wages immediately, due to his current financial condition. Tax relief was immediate and very much appreciated by this client.
In addition, we re-filed his 2002 through 2006 tax returns, and got the balance reduced to $12,000. The IRS Revenue Officer now agreed to place his account into “currently not collectible” status, once we showed his current financial status. Steve is not required to make payments to the IRS and can breathe easier now, since the IRS burden has now been lifted off his back.
After asking Steven about his services with the Franskoviak team, he stated “It’s a relief to have all my past returns processed after being so afraid of the consequences of what could have happened. Your team has been the most helpful. I was afraid to face the music and during my consultation, and you convinced me it would all work out. After that, I wasn’t as afraid anymore.”
Owed: $80,000 Settled: $12,000


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