Sometimes, people fall on hard times or are drowning in their month-to-month expenses. The thought of even a small monthly IRS payment plan can be daunting to say the least. The good news: if you are able to prove to the IRS that you are not able to pay the IRS a monthly Installment Agreement through a disclosure of your financial information to the IRS, you may qualify to be placed into CNC.

Although penalties and interest continue to accrue while in this status, and although the IRS generally files tax liens to protect their interest in the tax debt, while you’re in this status, you’re protected from enforcement action such as bank account levies and wage garnishments.