
But, the IRS has discretion to exclude debts from Passport Certification, that are CNC. The IRS is required by law to notify the State Department if you are certified as owing a Seriously Delinquent Debt.The IRS may contact you to update your financial information to be sure your ability to pay hasn’t changed.The filing of an NFTL can affect your credit rating, and your ability to sell property or other assets. The IRS may file a Notice of Federal Tax Lien (NFTL) even if your account is placed in CNC status.The IRS shouldn’t levy your assets or income, unless later federal tax liabilities arise to remove you from an uncollectible status.The IRS may keep your tax refunds and apply them to your debt.If the IRS places your account in CNC status See Publication 1660, Collection Appeal Rights. Appeal certain collection actions the IRS is taking or proposing.If your income is below a certain level, you may qualify for assistance from a Low Income Taxpayer Clinic. Hire an attorney, Certified Public Accountant (CPA), or Enrolled Agent (EA) to represent you.IRS employees are required to give you the name and phone number of their supervisor. Request a conference with the IRS Collection Manager.If the IRS decides you can make some type of payment and you still disagree, you may: You may need to provide the IRS this financial information so it can decide whether to grant your request. Gather your information to verify your income, expenses, and any debts you owe (loans, etc.).Continue to file your returns on time even if you can’t pay.Continue to make Estimated Tax Payments and Federal Tax Deposits on time.The IRS may place your accounts in CNC status, even if you have unfiled returns and are in a hardship situation, if you meet the requirements.If you meet the requirements, you might be able to have your return prepared for free at a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) site.If you need help preparing your tax returns and can’t afford to pay a tax return preparer, consider free file options.File prior year tax returns (if you were required to file a return), even if you can’t pay the amount you owe right now.If you decide to request CNC status, you should: Don’t ignore the notices you get from the IRS about your balances due.
