Short answer
The IRS can place an account in Currently Not Collectible status when financial hardship prevents payment, temporarily suspending most collection activity under IRM 5.16.1. The debt is not forgiven: penalties and interest accrue, refunds are applied, and a Notice of Federal Tax Lien may still be filed.
What pauses and what keeps going
| Pauses | Keeps going |
|---|---|
| Most collection activity | Penalties and interest |
| Pressure to set up a monthly payment | Refund offsets — federal refunds go to the debt |
| Possible Notice of Federal Tax Lien | |
| Periodic IRS review of finances | |
| Ohio and City of Canton collection, which are separate |
A levy already in place that is causing economic hardship must be released under 26 U.S.C. § 6343(a)(1)(D) — the same financial picture supports both requests. More on levies.
Asking for hardship status
- List monthly income. Pay stubs, Social Security, unemployment, side work — everything coming in.
- List necessary expenses. Housing, utilities, food, transportation to work, health care, court-ordered payments.
- Complete the collection statement. Form 433-F for most individuals (433-A for wage earners and self-employed with more detail, 433-B for businesses).
- Gather proof. The IRS may ask for documents showing income, monthly living expenses, bank accounts, and property.
- Call and ask for a collection delay. 800-829-1040, or the number on the notice. A representative with Form 2848 can make the call.
Hardship, payment plan or offer?
| Topic | Hardship (CNC) | Payment plan | Offer in compromise |
|---|---|---|---|
| Monthly payment | None while in status | Yes | Lump sum or periodic |
| Debt reduced | No | No | Possibly, if accepted |
| Collection clock | Generally keeps running | Suspended while request is pending | Extended during review |
| Best fit | Income covers only basic needs, now | Some room in the budget | Debt cannot be paid in full even over time |
Unlike a pending plan or offer, hardship status generally does not stop the 10-year clock. For the full side-by-side of routes, see what Canton residents can do about tax debt.
Can't cover rent and a tax payment? Say so on the call — hardship is screened before any payment number is suggested.
Call (330) 457-6198Questions people in Canton ask
Does Currently Not Collectible status erase my tax debt?
No. The full balance is still owed, and penalties and interest keep growing until it is paid. CNC only pauses most collection activity while paying would leave basic living expenses unmet.
How long does hardship status last?
There is no fixed period. The IRS may review finances periodically and can resume collection if the ability to pay improves. Meanwhile the 10-year collection period generally keeps running (26 U.S.C. § 6502).
Will I still get my refund while in CNC?
No. The IRS applies federal refunds to the unpaid debt while the account is in CNC status.
Can the IRS still file a lien while I am in CNC?
Yes. The IRS says it may file a Notice of Federal Tax Lien to protect the government’s interest. For Stark County property, that filing goes to the Stark County Recorder.
Does Ohio or the City of Canton have a hardship status?
Neither publishes an equivalent of IRS Currently Not Collectible status. For Ohio, the Attorney General’s offer-in-compromise program considers economic hardship on certified debts. For city tax, call the Income Tax Department at 330-430-7900.
Back to the start: back to the Canton overview.
Sources
Every fact on this page comes from these official pages, read on the date shown. Tax-law facts are re-checked at least every 90 days and local office facts every 180 days.
- Temporarily delay the collection process — IRS. Accessed October 10, 2026.
- IRM 5.16.1 Currently Not Collectible — IRS. Accessed October 10, 2026.
- 26 U.S.C. § 6502 Collection after assessment — Cornell LII. Accessed October 10, 2026.
- IRM 5.1.19 Collection Statute Expiration — IRS. Accessed October 10, 2026.
- 26 U.S.C. § 6343 Release of levy — Cornell LII. Accessed October 10, 2026.
- About Form 2848, Power of Attorney and Declaration of Representative — IRS. Accessed October 10, 2026.
- Collections — Offer-in-Compromise FAQs — Ohio Attorney General. Accessed October 10, 2026.
- Canton City Income Tax Overview — City of Canton. Accessed October 10, 2026.
- Recorder — Contact Us — Stark County Recorder. Accessed October 10, 2026.