How to Qualify for IRS Hardship Status (CNC) in Orange County

If you’re truly unable to pay your IRS tax debt — not even a small monthly amount — you may qualify for Currently Not Collectible (CNC) status, also known as IRS hardship.

When approved, the IRS pauses collection — no levies, garnishments, or calls — while letting you focus on basic living expenses. At Boulanger CPA, we help Orange County taxpayers assess CNC eligibility, properly complete IRS Form 433-A/F, and present it to IRS collections.

This guide explains how CNC status works, who qualifies, what relief you’ll get — and how we handle the paperwork to stop IRS enforcement fast.

What Is Currently Not Collectible (CNC) Status?

Currently Not Collectible (CNC) status is a temporary hardship designation by the IRS that pauses all collection activity—including wage garnishments, bank levies, and tax liens—if paying your tax debt would create a serious financial burden. It allows eligible taxpayers to avoid enforcement actions while remaining in compliance.

Your tax debt still exists, and penalties and interest may continue to accrue, but the IRS agrees that attempting to collect from you at this time would cause undue hardship. CNC is one of the most effective ways for taxpayers in Orange County, CA to get immediate relief when they cannot afford to pay the IRS.

This is why tax compliance as the key to resolving tax debt becomes critical: missing returns or inaccurate filings can prevent you from qualifying.

Who Qualifies for IRS Hardship (CNC) Status?

To qualify for CNC, you must prove that paying your IRS debt would prevent you from meeting your basic living expenses.

The IRS uses a formula based on:

• Income vs. allowable expenses
• Asset equity (home, car, bank accounts)
• Household size and dependents
• Geographic location (Orange County costs can be factored in)

Common qualifiers include:

• Unemployed or underemployed individuals
• Low-income retirees or disabled persons
• Single parents living paycheck to paycheck
• Self-employed taxpayers with inconsistent income

This is directly tied to how the IRS determines your ability to pay, which they calculate through strict financial standards rather than your actual monthly bills.

IRS Allowable Living Expenses (And Why They Matter)

The IRS doesn’t use your actual expenses—they use standard allowances for:

• Housing and utilities
• Food and clothing
• Transportation
• Out-of-pocket medical costs

If your income doesn’t cover these basic costs (even by their conservative standards), you likely qualify for CNC.

💡 Tip: Living in high-cost areas like Anaheim or Garden Grove can work in your favor—if properly documented.

How to Apply for Currently Not Collectible Status in Orange County

Here’s a step-by-step process we use at Boulanger CPA to help clients get into CNC status:

Step 1: Verify Compliance

Make sure all required tax returns are filed. You can’t request hardship status if you have missing returns.

Step 2: Gather Financial Documentation

You’ll need to provide detailed records of:

• Income (pay stubs, self-employment, benefits)
• Monthly expenses (rent, food, medical, etc.)
• Bank statements
• Asset details (home, vehicles, etc.)

Step 3: Complete IRS Form 433-A or 433-F

This is your financial disclosure form. Accuracy matters—a lot.

Step 4: Submit to the IRS

Depending on your situation, we may:

• Contact the IRS directly on your behalf
• Submit through the Automated Collection System (ACS)
• Request CNC during a Collection Due Process hearing

Step 5: Monitor IRS Response

Once approved, we receive written confirmation that your account is Currently Not Collectible, and all collection actions are halted.

What Happens After CNC Is Approved?

Once your account is in CNC status:

• Collections stop immediately
• Penalties and interest may continue to accrue
• The IRS may review your financials every 1–2 years
• If your income increases, your CNC status can be revoked

The IRS also keeps track of the understanding the IRS 10-year statute on collections, which means your debt won’t last forever — but timing and compliance are critical.

This is why we continue to monitor and support clients even after approval—to keep them protected.

CNC vs Offer in Compromise: Which Is Better?

CNC is a temporary pause in collections due to hardship. You still owe the full amount.

Offer in Compromise (OIC) is a settlement that reduces your total debt, but only if you qualify.

We often use CNC status as a stepping stone to an Offer in Compromise. It buys time to get compliant, build a case, and stabilize income.

If an Offer in Compromise isn’t possible, we may also recommend reviewing the IRS installment agreement guide to set up manageable monthly payments. Just be aware of what happens if you default on an IRS installment agreement — the IRS can immediately reinstate aggressive enforcement actions.

What If the IRS Rejects Your Hardship Request?

Rejection doesn’t mean the end. It may just mean your financials need to be updated or clarified. We:

• File appeals if the IRS wrongly rejects CNC
• Re-submit updated financials
• Explore other solutions like payment plans or Offer in Compromise

In California, some clients also face California FTB levy enforcement, which makes it even more urgent to have a coordinated federal and state resolution strategy.

Real Client Success Story – Orange County, CA

“I was living off Social Security and the IRS kept sending threatening letters. Boulanger CPA filed my financials and got me into CNC in under 30 days. No more stress, no more sleepless nights.” – Maria L.

Why Work with a Local Orange County CPA?

When it comes to IRS hardship status, the details matter. We’ve helped dozens of clients in Anaheim, Orange, and Garden Grove get protected from collections.

As your local tax resolution team, we:

• Understand California-specific cost of living allowances
• Know how to present hardship cases effectively
• Offer both virtual and in-person support
• Have direct IRS contact channels for fast response

Don’t trust a national call center with your financial future—choose a licensed CPA who lives and works in your community.

Call Now for a Free Hardship Status Evaluation

If you're overwhelmed by IRS tax debt and can’t pay, IRS hardship status (CNC) could stop collections and give you peace of mind.

📍 Serving Anaheim, Orange, Garden Grove, and all of Orange County
📞 Call Now: 657-218-5700
🌐 Schedule a   Free Consultation: https://www.orangecounty.cpa

Let us help you pause the IRS and protect what matters most.

When you’re ready to take action, you can explore more in Defend What’s Yours with our guidance.

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.

He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.