When paying the IRS would mean going without essentials.

Temporary breathing room for financial hardship

The IRS may delay collection when paying a tax debt would prevent you from meeting basic living expenses. This is a hardship determination based on the facts of your case. The balance remains owed, and interest and penalties generally continue.

CNC is different from an Offer in Compromise. An OIC is a settlement if accepted and completed; CNC is a collection status that the IRS can revisit when finances improve. A federal tax lien may still be filed, and tax refunds may be applied to the outstanding balance.

How hardship is reviewed

Expect to document income, bank accounts, assets, and necessary expenses. The IRS may request a collection information statement and supporting records. Having no remaining monthly income in a calculator is a reason to investigate hardship, not automatic approval.

National and local expense standards provide a starting point. Serious medical needs, disability, unusual housing circumstances, and other necessary costs may require more detailed evidence. Asset equity can also affect the outcome.

What to prepare

• Recent income statements or evidence of unemployment or benefit payments.
• Bank balances, account statements, and asset information.
• Housing, utilities, insurance, medical, and dependent-care expenses.
• IRS notices, tax balances, and a record of any missing returns.

When professional help is useful

A tax professional can examine an ongoing levy, unusual expenses, or a collection deadline. If representation is unaffordable, a Low Income Taxpayer Clinic may be available to eligible taxpayers. You can also contact the IRS directly using the information on your notice.

Sources & further reading

• IRS: Temporarily delay the collection process
• IRS Topic 202: Tax payment options
• Low Income Taxpayer Clinics

Sources checked September 30, 2026. Tax rules and allowance amounts can change.