Currently Not Collectible (CNC) Status —
Maricopa County, Arizona
When paying the IRS would leave you unable to cover basic living expenses, Currently Not Collectible status — Status 53 — can put your account on hold. For many taxpayers across the Phoenix metro, CNC stops levies and wage garnishments while your finances recover. In some cases the 10-year collection statute expires while you are in CNC, wiping out the balance entirely. See our flat-fee pricing →
Currently Not Collectible status pauses IRS collection for Maricopa County taxpayers when paying would prevent you from meeting basic living expenses. The IRS stops levies and garnishments, but the debt remains and interest keeps accruing. Because the 10-year collection statute keeps running, some Phoenix metro balances expire while in CNC. You qualify by proving on Form 433-F that your allowable expenses meet or exceed your income. A $399 case review confirms whether you meet the hardship threshold.
What is Currently Not Collectible Status?
Currently Not Collectible is an IRS account status applied when a taxpayer cannot pay their tax debt without sacrificing necessary living expenses. Internally the IRS codes it as Status 53. Once your account is placed in CNC, the IRS suspends enforced collection — no new levies on your wages or bank accounts and no asset seizures.
CNC is not forgiveness. The debt does not disappear, and interest continues to add up. What CNC buys you is time and protection. Across Maricopa County, many Phoenix-area taxpayers turn to CNC when a temporary hardship makes payment impossible. And because the collection statute, generally ten years, keeps running during CNC, taxpayers whose hardship lasts long enough may see the remaining balance expire and be written off permanently.
How the IRS Decides You Qualify
CNC eligibility comes down to a financial analysis. The IRS compares your monthly income to your allowable living expenses using national and local Collection Financial Standards. If little or nothing is left over, you likely qualify.
You document this on Form 433-F, the Collection Information Statement. The IRS applies its standards for housing, food, transportation, and healthcare. If your necessary expenses consume essentially all of your income, paying the IRS would create a hardship and your account can be placed in CNC.
Who Typically Qualifies in Maricopa County
The Phoenix metro economy produces patterns of income volatility that often line up with the CNC hardship test — from contractor payroll swings to seasonal snowbird rentals.
Construction & Contractor Income
The Valley's construction boom means irregular payroll and Trust Fund Recovery Penalty (TFRP) exposure; slow seasons can leave little left over after expenses.
Snowbird Seasonal-Rental Hosts
Scottsdale, Mesa, and Chandler hosts who underreported seasonal-rental income often face debt with limited year-round cash flow to pay it.
Tech Workers in Transition
Semiconductor and tech employees near the TSMC and Intel campuses with restricted stock or job changes may have temporary income gaps.
Fixed or Reduced Income
Retirees and Phoenix-area taxpayers whose income barely covers necessary living expenses, or who recently lost work.
What You Should Know Before Requesting CNC
The 10-Year Collection Statute and CNC
The IRS generally has ten years from the date a tax is assessed to collect it — the Collection Statute Expiration Date, or CSED. That clock does not stop simply because your account is in Currently Not Collectible status. For Maricopa County taxpayers, this is the most powerful feature of CNC: the statute keeps counting down while enforced collection is frozen.
If your hardship continues long enough, the CSED can arrive before you are ever able to pay, and the remaining balance is written off permanently. Certain events — such as filing an Offer in Compromise, requesting a Collection Due Process hearing, or bankruptcy — can suspend and extend the CSED, so tracking the exact statute date is essential before relying on it as an exit strategy.
How to Request Currently Not Collectible Status
Frequently Asked Questions
What is Currently Not Collectible status and how does it help Maricopa County taxpayers?
Currently Not Collectible (CNC), coded internally by the IRS as Status 53, is a hardship designation for taxpayers who cannot pay their tax debt without sacrificing basic living expenses. For Maricopa County residents in Phoenix, Scottsdale, Mesa, Tempe, Chandler, Gilbert, or Glendale, CNC pauses active collection such as wage garnishments and bank levies. The debt remains and interest keeps accruing, but enforced collection stops while your finances recover.
Does the 10-year collection statute keep running while I am in CNC in Arizona?
Yes. The IRS Collection Statute Expiration Date (CSED) — generally ten years from assessment — continues to run while your Maricopa County account sits in Currently Not Collectible status. Some taxpayers whose hardship lasts long enough see the remaining balance expire and get written off permanently before the statute ends.
How do I qualify for Currently Not Collectible status in Maricopa County?
You qualify by proving financial hardship on Form 433-F. The IRS compares your monthly income to allowable living expenses using Collection Financial Standards. If little or nothing is left after necessary expenses, your account can be placed in CNC. Seasonal snowbird rental income, irregular construction and contractor pay, and volatile tech earnings around the Phoenix metro all factor into this analysis.
See If You Qualify for a Collection Pause in Maricopa County
Our $399 case review runs the same hardship analysis the IRS uses to determine whether your account qualifies for Currently Not Collectible status — and whether the 10-year statute could expire in your favor.