IRS Hardship Program
When You Can't Pay, the IRS Must Stop Collecting
The IRS Hardship Program — officially Currently Not Collectible (CNC) status — stops all IRS collections when you cannot pay your tax debt while meeting basic living expenses. If you qualify, levies stop. Garnishment stops. Collection calls stop. We prove your hardship to the IRS.
Free, confidential review. No obligation.
100%
Collection activity suspended under CNC
IRM 5.16
IRS hardship classification criteria
1-3 Months
Typical CNC approval timeline
Annually
CNC status reviewed by IRS
How CNC Works
IRS Hardship Status: Stopping Collections When You Can't Pay
CNC is the IRS's formal recognition that collecting from you would create an economic hardship. When you're in CNC, the IRS stops trying to collect — period.
All Collections Stop
Bank levies, wage garnishment, property seizure, revenue officer visits, and ACS collection calls all stop when your account is classified as Currently Not Collectible. You get immediate relief from enforcement.
Based on IRS Financial Standards
CNC qualification uses the IRS's own Collection Financial Standards. If your income minus allowable expenses (housing, food, transportation, medical, etc.) leaves nothing for tax payments, you qualify.
Temporary Protection with a Strategy
CNC protects you while you stabilize your finances, wait for the CSED to expire, or prepare for another resolution (OIC, IA). It's a shield — not a permanent solution — but it buys you months or years of protection.
Documentation-Driven Approval
CNC isn't granted because you 'say' you can't pay. It requires Form 433-A or 433-F with supporting documentation: bank statements, pay stubs, bills, and a verifiable financial picture. We prepare this for you.
Do You Qualify?
CNC Hardship Qualification Factors
Monthly Income vs. IRS Allowable Expenses
If your household income minus IRS Collection Financial Standards expenses leaves zero or negative monthly disposable income, you qualify. The test is mechanical, not subjective.
Limited Assets
Significant equity in real estate, large investment accounts, or valuable vehicles can disqualify CNC. But retirement accounts are generally not required to be liquidated for tax payment.
All Returns Filed
You must file all required tax returns before the IRS will process a CNC request. Unfiled returns are the most common barrier — we file them for you.
Hardship Circumstances
Serious medical conditions, disability, job loss, advanced age on fixed income, caregiving responsibilities, and natural disasters all strengthen a CNC case.
Current Year Compliance
You must have adequate withholding or estimated tax payments for the current year. The IRS won't stop collecting old debt while you're accruing new debt.
Honest Financial Disclosure
Inaccurate or incomplete financial information leads to CNC denial — and the IRS keeps the information on file. We ensure your disclosure is thorough and accurate.
CNC Is a Bridge, Not a Destination
Too many taxpayers enter CNC and forget about their tax debt — only to discover years later that interest has doubled the balance and the IRS has filed a lien. CNC stops enforcement, but the debt continues to grow at 7% interest compounded daily. Use the CNC period to pursue a permanent resolution: wait for the CSED to expire, prepare an OIC, or improve your finances to afford an IA. Our team monitors your CSED dates and guides you toward a permanent exit strategy.
The Math
IRS Collection Financial Standards
The IRS uses fixed standards to determine allowable living expenses. If your income minus these expenses leaves $0 or less, you qualify for CNC.
National Standard
Food, Clothing & Misc.
Varies by household size and gross monthly income. $799–$1,884/month for a family of 4 depending on income.
Key: No documentation required — IRS applies the standard automatically based on income and family size.
Local Standard
Housing & Utilities
Varies by county. $1,200–$3,500+/month depending on location. Includes rent/mortgage, property tax, utilities.
Key: Must document actual expenses. If your rent exceeds the local standard, you can only claim the standard amount (with limited exceptions).
Local + National
Transportation
Ownership costs: ~$400-600/month per vehicle (national). Operating costs: vary by region. Generally one vehicle per taxpayer.
Key: Car payment + insurance + gas + maintenance up to the standard. If you own the vehicle free and clear, ownership costs still apply.
Actual Expenses
Out-of-Pocket Healthcare
No fixed standard — actual medical, dental, prescription, and health insurance costs. Must be documented.
Key: This is where many taxpayers underreport. Co-pays, prescriptions, therapy, glasses, dental work — track everything.
Pro tip: The IRS allows additional expenses beyond the standards for: court-ordered payments (child support, alimony), childcare for working parents, delinquent state/local taxes, secured debt payments, and certain health and welfare expenses. We review your entire financial picture — not just the standard categories — to build the strongest possible CNC case.
Exit Strategy
CNC Is Temporary — What Comes Next?
CNC protects you now. Here are the permanent exit strategies we plan from day one.
CSED Expiration
If your CSED is within 1–3 years, waiting it out in CNC costs nothing. The debt expires by law. This is the most common CNC exit strategy.
Learn about CSEDFinancial Recovery → OIC
Once stabilized, you may qualify for an OIC. CNC bought you time; OIC provides permanent settlement. We transition you when the timing is right.
Explore OICFinancial Recovery → IA
If your income improves, an Installment Agreement replaces CNC. Pay the balance over time at a manageable monthly amount.
Explore IAOur Process
How We Get You Into CNC Status
Financial Analysis
We gather your income records, expense documentation, and asset information. We calculate your monthly disposable income using IRS Collection Financial Standards — the same standards the IRS uses.
Day 1-3
Compliance Cleanup
We identify and file all missing tax returns. We ensure current-year estimated payments or withholding are adequate. You must be compliant before CNC is possible.
Week 1-2
Form 433-A/433-F Preparation
We prepare your Collection Information Statement with accurate income figures, IRS-allowable expenses, asset valuations, and supporting documentation. This is where most self-prepared CNC requests fail.
Week 2-3
IRS Submission and Negotiation
We submit your CNC request and manage all IRS communication. If the IRS requests additional information, we respond. If the IRS proposes an IA instead, we negotiate or appeal.
1-3 months
Annual Monitoring
CNC isn't set-and-forget. We monitor your account for IRS reviews, track your CSED dates, and alert you if your financial situation changes in a way that could affect CNC status.
Ongoing
FAQ
IRS Hardship Program Questions
Emergency CNC for an active levy can be processed in 24-48 hours. Standard CNC requests take 4-12 weeks. The speed depends on how quickly complete documentation is provided — which is why we prepare it meticulously before submission.
Yes. Once your account is classified as CNC, the IRS releases active wage garnishments. You may need to provide your employer with the release documentation (Form 668-D or similar), which we help facilitate.
Interest continues accruing at the current rate (7% as of 2026). Penalties may also continue. The debt grows. However, if you're in CNC because you truly can't pay, the growing balance is academic — you either won't ever be able to pay, or the CSED will expire first.
Yes. The IRS can and will offset your federal (and sometimes state) tax refunds against CNC debt. CNC status does not prevent refund offsets. The solution: adjust your withholding so you don't overpay — there's no refund to offset.
As long as your financial situation supports it. The IRS reviews CNC cases periodically (generally annually) when you file your tax return. If your income increases above CNC thresholds, CNC is removed. If your finances remain the same, CNC continues. The maximum duration is until the CSED expires.
Explore More
Related Resources & Stories
Explore our guide and real client success stories about IRS hardship relief and Currently Not Collectible status.
IRS Hardship Program Guide
Complete guide to IRS hardship programs, CNC status qualification, and the Form 433-A financial disclosure process.
Learn moreCurrently Not Collectible Guide
In-depth guide to Currently Not Collectible status and eligibility under IRS Collection Financial Standards.
Learn moreIRS Hardship Success Story
Real client results — how we helped taxpayers get IRS hardship relief and CNC status to stop collections.
Learn moreFind Out If You Qualify for IRS Hardship Status
Stop the levies, stop the garnishment, stop the calls. We'll evaluate your financial situation against IRS standards and tell you honestly whether you qualify for CNC.
New Beginning Tax Solutions is a private tax resolution company and is not affiliated with the IRS or any government agency. Results vary.
Get Started