If you’re facing a tax bill you simply can’t pay right now, you’re not alone. Many good people in Louisiana find themselves in tough situations—job loss, medical bills, or other financial struggles can make paying the IRS impossible.
The good news? The IRS recognizes hardship, and there’s a way to hit “pause” on collections through what’s called Currently Not Collectible (CNC) status. At Geaux Tax Resolution, we help taxpayers in Mandeville, Lafayette, and beyond qualify for this relief when they need it most.
What Is Currently Not Collectible (CNC) Status?
CNC status is temporary relief granted by the IRS to taxpayers who can’t afford to make payments without sacrificing basic needs like rent, food, or medicine.
When your account is placed in CNC, the IRS stops all collection activity — meaning:
- No wage garnishments
- No bank levies
- No collection calls or letters
You’ll still owe the balance, and interest will continue to accrue, but CNC gives you breathing room when you need it most.
Who Qualifies for CNC Status?
The IRS uses detailed financial guidelines—known as Collection Financial Standards—to determine who qualifies. These standards take into account your income, expenses, and the cost of living where you reside.
In other words, what counts as “financial hardship” in Louisiana is based on what it really costs to live in places like Mandeville, Lafayette, or elsewhere in the state.
You may qualify for CNC status if:
- You’re unemployed or working reduced hours.
- Your necessary expenses equal or exceed your income.
- You’re on Social Security, disability, or a fixed income.
- You’re facing medical hardship, foreclosure, or other serious financial stress.
At Geaux Tax Resolution, we carefully review your income and expenses to see if CNC is the right fit—and if not, we’ll explore other forms of relief.
How to Apply for CNC Status
Applying for CNC requires proof of your financial hardship. Here’s what the process typically looks like:
1. Complete a Financial Statement
We help you fill out Form 433-A or Form 433-F, which lists your income, expenses, assets, and debts. The IRS uses this to calculate whether you have the ability to pay.
2. Provide Supporting Documentation
You’ll need to submit recent pay stubs, bank statements, housing costs, and proof of major expenses like medical bills or utilities. The more accurate and detailed, the better.
3. Wait for Review
Once submitted, the IRS reviews your case. If they agree that paying your tax bill would cause financial hardship, they’ll place your account in Currently Not Collectible status and stop collections.
What Happens Once You’re in CNC?
Once approved, you’ll experience some immediate relief:
- Collections Stop: No more levies, liens, or garnishments.
- Interest Still Accrues: The balance continues to grow, but you won’t be forced to pay right now.
- Periodic Review: The IRS may check your financial situation periodically to see if anything has changed.
- The Clock Keeps Ticking: The IRS generally has 10 years to collect a debt. That statute of limitations continues to run while you’re in CNC, which can sometimes lead to debt expiration.
CNC isn’t forgiveness—it’s a pause—but for many people, it’s the break they need to get back on their feet.
When CNC Makes Sense
CNC is a great fit if:
- You’re dealing with major medical bills or personal loss.
- You’re on a fixed income and can’t afford to pay more.
- You’re between jobs or recovering from a financial setback.
- You need time to stabilize before entering a payment plan later.
It’s not about avoiding taxes—it’s about giving yourself time to recover without the added stress of IRS enforcement.
How Can Geaux Tax Resolution Help Louisiana Taxpayers?
Applying for CNC can be intimidating, especially when you’re already stressed about money. That’s why we take care of the process for you.
At Geaux Tax Resolution, we:
- Review your income and expenses to see if you qualify.
- Complete and submit all required IRS forms.
- Communicate directly with the IRS to prevent levies during review.
- Follow up to ensure your case remains protected.
- Coordinate with the Louisiana Department of Revenue, if needed, to pause state collections too.
We’ve helped many clients across Mandeville, Lafayette, and surrounding parishes find temporary relief and a fresh start.
When to Revisit Your CNC Status
CNC isn’t permanent, but that’s not a bad thing. If your income improves, we can help you transition to a manageable IRS payment plan or explore penalty abatement to reduce what you owe.
Our goal is to keep you in good standing long-term—so you never feel like you’re starting from scratch again.
Find the Breathing Room You Deserve
If your financial situation has made it impossible to pay your tax debt, Currently Not Collectible status could be the relief you need. The sooner you act, the sooner you can get the pressure off your shoulders.
Let our friendly, understanding team at Geaux Tax Resolution help you find the right solution for your situation. We’ll handle the IRS for you—so you can focus on rebuilding.
📍 Mandeville Office
1795 W. Causeway Approach, Suite 102
(985) 722-1040
📍 Lafayette Office
3909-L Ambassador Caffery, Suite B
(337) 420-1040
