The situation
Robert was laid off from a manufacturing job in Michigan and owed about $22,000 from prior years. With only unemployment income, he could not pay anything toward the balance, yet the IRS continued sending notices and threatening enforcement. He needed breathing room, not a payment he could not make.
What we did
- We pulled his transcripts and confirmed his returns were filed so nothing blocked relief.
- We prepared a financial statement showing his income did not cover allowable basic living expenses.
- We requested Currently Not Collectible (CNC) status, demonstrating that any forced collection would create real hardship.
- We explained how the case would be revisited later and prepared him for the path to a permanent resolution once his income recovered.
The outcome
The IRS placed the account in Currently Not Collectible status, pausing active collection. No levies, no garnishments, and no required payments while his hardship continued — and the 10-year collection clock kept running in the background.
A pause can be a strategy
For taxpayers in genuine hardship, CNC status stops collection now, and the collection statute keeps running — sometimes a portion of the debt expires before collection ever resumes.
Can’t pay anything right now? You may still have options.
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About these stories
Illustrative client scenarios based on common case types. Individual results vary. These scenarios are composites drawn from common case types we handle at US Certified Tax Services; they are not specific named clients and are provided for illustration only. Outcomes depend on your individual facts and IRS determinations. For a review of your situation, request a free consultation.