Enrolled Agent Exam [Part 3] 64, Currently Not Collectible and Economic Hardship

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:

- Currently Not Collectible (CNC) is a temporary status for taxpayers in economic hardship, not a permanent forgiveness of tax debt.

- The IRS uses Form 433 and Allowable Living Expense standards to determine if a taxpayer's income is insufficient to cover basic needs and tax payments.

- While in CNC status, interest and penalties continue to accrue, and the IRS can still file a Notice of Federal Tax Lien and seize tax refunds.

- CNC status is subject to periodic, often annual, review by the IRS to see if the taxpayer's financial condition has improved.

- A key exam distinction is that CNC status does NOT stop the 10-year Collection Statute Expiration Date (CSED) from running, unlike an Offer in Compromise.

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