Currently not collectible: the hardship pause and what it costs
Enter your state, county, household and income. If the allowable expenses of the IRS standards are higher than the income, the calculator says so and shows by how much: that gap is what a hardship request rests on.
- Debt forgiven
- no
- Interest while paused
- 7 % a year, daily
- Fixed duration
- none
- Request by
- phone, with Form 433-F or 433-A
Allowable monthly expenses
$5,057
Income is $757 below the allowance: the IRS treats this as no ability to pay (currently not collectible territory).
| Food, clothing and other items | $1,857 |
| Housing and utilities (standard $2,106) | $1,650 |
| Vehicle ownership and operating | $650 |
| Health care out of pocket and insurance | $520 |
| Taxes, child care, court orders | $380 |
Wayne County, Michigan; car costs at the Detroit figure. IRS Collection Financial Standards effective June 29, 2026.
Compiled by Radif Partners · How we calculate · rules and rates read on irs.gov · not tax advice, the IRS decides
Currently not collectible, or CNC, is the status the IRS gives an account when collecting would leave the taxpayer unable to meet basic living expenses. The test is arithmetic: gross monthly income against allowable expenses under the Collection Financial Standards in force since June 29, 2026. When nothing is left, the IRS may suspend most collection, meaning no levy on wages or bank accounts while the status lasts. The debt is not forgiven. Penalties and interest keep accruing, the IRS may file a Notice of Federal Tax Lien, it applies any federal refund to the balance, and it can review your finances later and resume collection. There is no fixed duration. A household of three in Wayne County, Michigan, with $4,300 of income is allowed $5,057 a month, $757 more than it earns. If its $27,000 balance sits in hardship status for two years, interest alone adds about $4,058 at the current rate.
The test behind the status
The IRS page on delaying collection does not publish an income threshold. It asks for a financial statement, Form 433-F or Form 433-A, and documents for income, living costs, bank accounts and assets, then compares what comes in with what the Collection Financial Standards allow. If the household has no remaining income and no equity that could be used, the IRS may mark the account currently not collectible. Assets matter as well as income: a person with little income but a paid-off rental property or a brokerage account is expected to use them.
A Detroit-area family below the line
The household below has three people, one car with a loan, rent of $1,650 including utilities, and a gross income of $4,300 a month. Every figure is under its standard or is an actual cost the IRS accepts.
| Item | Allowed each month |
|---|---|
| Food, clothing and other items, three people | $1,857 |
| Rent and utilities (county standard $2,106) | $1,650 |
| Car loan and running costs (Detroit) | $650 |
| Out-of-pocket health care and insurance | $520 |
| Current taxes withheld | $380 |
| Total allowable expenses | $5,057 |
| Gross income | $4,300 |
| Shortfall | -$757 |
On these numbers the IRS has nothing to ask for each month: the income would have to reach $5,057 before any payment fits. A retired person living alone in the same county, 65 or older, without a car, renting for $1,100 and paying $180 in premiums, is allowed $2,530; a pension and Social Security below that figure leave no room either.
Is your income under the allowance?
Allowable monthly expenses
$5,057
| Food, clothing and other items | $1,857 |
| Housing and utilities (standard $2,106) | $1,650 |
| Vehicle ownership and operating | $650 |
| Health care out of pocket and insurance | $520 |
What keeps running while collection is paused
CNC stops enforcement, not the meter. Interest is charged at the quarterly underpayment rate, compounded daily, on the tax, the penalties and the interest already added, and the late payment penalty continues each month until it reaches its 25 % ceiling. The table shows interest alone on a $27,000 balance, at the 7 % rate of the fourth quarter of 2026 carried forward.
| Time in hardship status | Interest added | Balance before penalties |
|---|---|---|
| 1 year, to October 2027 | $1,958 | $28,958 |
| 2 years, to October 2028 | $4,058 | $31,058 |
| 3 years, to October 2029 | $6,309 | $33,309 |
Other effects listed by the IRS: a Notice of Federal Tax Lien may be filed to protect the government's interest, and a federal refund is applied to the debt instead of being paid out. A payment made voluntarily during the pause still reduces the balance and the interest that follows.
Two side effects that help
Hardship status changes more than the levy risk. The IRS passport page says the IRS will not certify a seriously delinquent tax debt to the State Department when the account has been found currently not collectible because of hardship, so a balance above the passport threshold of $66,000 is not reported while the status holds. And a household that is only slightly short is not forced into a payment it cannot make: if the allowance and the income are close, the gap between them is the figure the IRS looks at, so a small change in rent, a second car loan ending or a child leaving home can move a family from hardship status into a low monthly plan, or back. Rerunning the numbers after any such change shows which side of the line the household is on.
How the status ends
There is no set term. The IRS may review the household's finances periodically and resume collection if the ability to pay improves, for example after a new job or an inheritance; it then usually asks for a plan. The IRS page on the collection period lists the events that suspend or extend the 10-year collection window, such as a pending installment agreement, an offer, bankruptcy or a collection due process hearing; hardship status is not among them. A balance that stays uncollectible long enough can therefore reach its collection statute expiration date, at which point the IRS can no longer collect it.
Asking for it
The request is made by phone, at 800-829-1040 or the number on the latest notice, and the IRS may ask for the financial statement and supporting documents before deciding. All required returns must be filed. If the numbers show some room to pay, the IRS will point to a payment plan, a partial payment agreement or an offer in compromise instead. The calculator shows where your household falls on the published standards; the IRS reviews the documents and makes the determination, and this page is not tax advice.