Currently Not Collectible (CNC): The Times are Tough Collection Defense


 The Internal Revenue Service (IRS) and to some extent the South Carolina Department of Revenue (SCDOR) understand that times are tough and people are having a hard time making ends meet. If you owe back taxes and are flat broke after you pay for necessities, then you may be able to get the IRS off your back until you get back on your feet.

The IRS has the ability to place your account in Currently Not Collectible (CNC) status. If they do then you will no longer receive threatening letters or phone calls about your past due taxes and YOU DO NOT HAVE TO MAKE ANY PAYMENTS. The IRS will not issue bank levies or wage garnishments while your account is in CNC status. However, the IRS will typically file a Federal Tax Lien to protect its interest in the past due taxes. https://askcompetentlawyer.com/ In addition, you will continue to receive letters from time-to-time that inform you of your current balance. Interest and penalties continue to accrue while your account is in Currently Not Collectible status.

Currently Not Collectible status is temporary in nature and your case may be reviewed every two years or so to make sure you still qualify. If your situation improves and the IRS feels like you can afford to make payments, they will take your account out of CNC status and will request some type of payments, typically an Installment Agreement.

As for the South Carolina Department of Revenue (SCDOR), they have an administrative position that if you, or anyone in your household, is receiving a paycheck -- and get this -- even unemployment checks are considered paychecks -- then you will not qualify for Currently Not Collectible status. So if your unemployment has run out and no one in your household has a job, then you can get some relief with the South Carolina Department of Revenue. If not tough luck, you better be ready to cough up some money each month or face wage garnishments and bank levies.

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