Sometimes the honest answer to “how much can you pay?” is nothing. After rent, food, utilities, insurance and getting to work, there is no money left. The levy is not collecting a debt; it is creating a new crisis every two weeks.
For that situation, the IRS has a status called Currently Not Collectible, usually shortened to CNC. And for wage levies specifically, the Code has a rule that goes with it.
The rule: IRC 6343(e)
IRC 6343(e) is short. In the case of a levy on salary or wages, “upon agreement with the taxpayer that the tax is not collectible, the Secretary shall release such levy as soon as practicable.”
IRM 5.16.1.2.9 puts it into practice. It says IRC 6343(e) requires release of a wage levy upon agreement that the tax is currently not collectible, that steps should be taken to accomplish the release immediately, and that case histories must be reviewed to ensure wage levies are released before an account is declared uncollectible under the hardship closing codes.
What hardship CNC requires
IRM 5.16.1.2.9 defines the standard: a hardship exists if a taxpayer is unable to pay reasonable basic living expenses. Those cases generally involve no income or assets, no equity in assets, or insufficient income to make any payment without causing hardship. The IRM adds the flip side: an account should not be reported CNC if the taxpayer has income or equity in assets and enforced collection would not cause hardship.
The decision rests on a Collection Information Statement. The IRM refers to Form 433-A for this, and IRS financial analysis follows IRM 5.15.1, the Financial Analysis Handbook. That is where the IRS compares your expenses to its Collection Financial Standards.
For a wage earner, this usually means your income, after the expenses the IRS allows, leaves nothing for a monthly payment.
CNC versus a hardship levy release
These are related but not identical.
- An economic hardship release under IRC 6343(a)(1)(D) releases the levy, in whole or in part, because it is creating a hardship. You might still pay something, through a partial release or an agreement.
- CNC is the IRS deciding the account is not collectible right now and closing it from active collection. IRM 5.11.2.3.1.4 says that if a case is closed as a hardship, all open levies should be released.
In practice, the financial statement that supports one supports the other. If it shows some ability to pay, expect a payment arrangement. If it shows none, CNC is the outcome to ask for.
Unfiled returns and CNC
This is a point most people never hear. IRM 5.16.1.2.9 says accounts may be reported CNC hardship if a Collection Information Statement can be verified, even if there are unfiled returns. It also says, in a caution: “If a hardship determination is verified, a levy cannot be issued or left in place to persuade a taxpayer to file.”
The IRM does generally expect open filing requirements to be resolved when an account is reported CNC, and if an unfiled return is needed to verify the financial statement, the IRS may hold the account until it is secured. But the levy is not supposed to be the leverage. See unfiled returns and wage levies.
Cases that do not need a full financial statement
IRM 5.16.1.2.9 allows CNC without a full financial statement for accounts below an internal dollar threshold when at least one of these is true: the taxpayer has a terminal illness or excessive medical bills; is incarcerated; has only Social Security, welfare or unemployment income; or is unemployed with no income. Employees must secure documentation if internal records do not confirm the circumstance. The threshold amount is redacted in the public IRM, so do not count on it, but if one of those facts describes you, say so up front.
What CNC does and does not do
CNC stops active collection for now. It does not forgive anything. Penalties and interest continue to accrue. The lien, if one exists, stays in place. See wage levy vs. federal tax lien.
The IRS also watches your income. IRM 5.16.1.2.9 explains that hardship CNC accounts can be reactivated systemically based on an increase in total positive income above an amount tied to the closing code, and that this income is reviewed annually when you file a return. Get a raise or a better job and the account may come back to collection. That is the deal: relief while you need it.
And CNC is not a permanent exemption from levy. IRC 6343(a)(3) says a release does not prevent a subsequent levy. If the account is reactivated and you do not respond, a new levy can follow the required notices.
How to ask for CNC
- Prepare a complete financial statement. Every source of household income, every necessary expense, every asset. Use the IRS form your case calls for.
- Document it. Pay stubs, lease, utility bills, insurance, medical bills, car loan, bank statements.
- Call the IRS office handling your account or your revenue officer. Ask that the account be reported currently not collectible due to hardship and that the wage levy be released under IRC 6343(e) as soon as practicable.
- Ask for the release to be faxed to your employer if payday is close. IRM 5.11.2.3.3 allows faxed releases.
- Confirm with payroll that the levy has stopped.
An example
Carla is single, paid biweekly, with take-home pay of $1,350. Under Publication 1494 (Rev. 12-2025), her 2026 exempt amount is $619.23, so the levy takes $730.77 a paycheck. Her documented necessary expenses, rent in a modest apartment, utilities, groceries, bus fare and health insurance, come to about $2,900 a month. Her take-home pay is about $2,925 a month before the levy.
After allowable expenses, there is essentially nothing left for a payment. That is a CNC profile. Once the IRS agrees the tax is not collectible, IRC 6343(e) requires the wage levy to be released as soon as practicable, and her full $1,350 comes back each payday.
If her financial statement instead showed $150 a month left over, the likely outcome is not CNC but a small payment arrangement, with the levy released under IRC 6343(a)(1)(C), or a partial release while that is set up.
If the IRS disagrees
The most common dispute is over expenses: the IRS applies its standards and concludes you can pay something. Document any expense above the standards and why it is necessary. If the IRS still refuses, you can appeal the levy decision through the Collection Appeals Program.
For my firm’s overview of CNC status, see Currently Not Collectible at GetIRSHelp.com.
If there is nothing left after the basics, the levy is not collecting. It is just hurting. The law says release it.