What It Is
Currently Not Collectible is a status, not a forgiveness program. When you cannot pay anything without going short on basic living expenses, the IRS can mark your account as not collectible and stop active collection, no levies and no garnishment, for as long as the hardship lasts. Two things keep moving in the background: penalties and interest still build, and the ten year collection clock keeps running, which can work in your favor. The IRS can still file a tax lien, and it will review your account again when your income recovers.
Is This You?
- Your income barely covers, or does not cover, your basic living costs
- You have little or no equity in assets the IRS could take
- A monthly payment would leave you unable to pay rent, food, or utilities
- You are filed and current, or you can get there
What You Can Do
These steps build the hardship case the IRS needs to see. Work through them in order.
- File any missing tax returns so you are current
- Pull your account transcripts to confirm the years and balances
- Total your monthly income from all sources
- List your monthly living expenses against the IRS allowable standards
- Note any equity in assets the IRS may weigh
- Gather proof: pay stubs, bank statements, and bills
- Complete the financial statement, Form 433-F or 433-A
- Understand that interest keeps accruing while collection is paused
Get the Currently Not Collectible Checklist
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Want the Full Walkthrough?
Currently Not Collectible Guide
How to document hardship, which financial form to use, and how to keep the status from being reversed too soon.
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