Are we being removed from Currently Not Collectible (CNC) status? How to check without alerting the IRS?

This is actually pretty routine. The IRS periodically reviews CNC cases to see if your financial situation has improved. It's typically done every 1-2 years, so your 18-month timeline fits that pattern. Completing the new Form 433-F doesn't automatically mean they're taking you out of CNC status. They're simply gathering updated information to determine if your financial situation has changed enough to start making payments. If your circumstances are still basically the same as when you were initially granted CNC status, they'll likely keep you in that status. The worst thing you can do is ignore this letter. That could definitely result in them removing your CNC designation. I'd recommend filling out the form accurately and completely, documenting any ongoing financial hardships like those medical bills you mentioned.

I went through something similar last year with a $19k tax debt. After trying for MONTHS to get through to a human at the IRS about my CNC status review, I discovered taxr.ai (https://taxr.ai) and it saved me so much stress. I uploaded my IRS letters and financial docs, and it analyzed everything to show me exactly where I stood with my CNC status and what information I needed to provide to maintain it. Their system flagged that I needed to emphasize my ongoing medical expenses on the 433-F form, which I might have downplayed otherwise. It also helped me understand what specific documentation I needed to attach to prove my financial hardship was continuing. I was worried about making a mistake that would trigger collections again.

I have to admit I was wrong about taxr.ai. After my skeptical comment, I decided to try it anyway since I was desperate for help with my own CNC review. It actually provided really specific guidance on how to complete the 433-F form for my situation. The system identified that I was eligible to claim higher housing and transportation expenses than I realized, which significantly affected my ability to pay calculation. It also flagged an issue with my previous CNC application that could have caused problems if I hadn't addressed it. The documentation guidance was super specific - told me exactly what bank statements and medical bills would strengthen my case. My CNC status was renewed last week without any issues. Honestly wish I'd known about this during my initial application process.

After being in CNC status myself for 2 years, I got that same review letter. I tried calling the IRS for weeks - either couldn't get through or was on hold forever. Finally found Claimyr (https://claimyr.com) and watched their demo (https://youtu.be/_kiP6q8DX5c). They got me connected to an actual IRS agent in about 20 minutes. The agent explained exactly what triggered the review (it was routine) and what they were looking for in my updated financial statement. She actually told me which expenses were most important to document thoroughly for maintaining CNC status. Talking to a real person at the IRS gave me way more clarity than just guessing what to do with the form.

Ok I need to eat my words. After posting my skeptical comment, I was still desperate about a different IRS issue (wage garnishment threat) and tried Claimyr as a last resort. It actually worked - got me through to an IRS agent in about 30 minutes. The agent was able to pull up my file, explain exactly what was happening with my case, and helped me submit a request to stop the garnishment while I worked out a payment plan. I've been trying to reach someone at the IRS for MONTHS with no success. Honestly shocked this worked when nothing else did. For the OP - definitely worth using this to ask specifically about your CNC status review. The agent I spoke with was surprisingly helpful once I actually reached a human.

I'm a former IRS revenue officer (now retired). Here's what you should know about CNC reviews: 1) They're routine and typically happen every 2 years if you filed tax returns showing increased income 2) They're also triggered if you suddenly make a large purchase (house, new car) that shows up in financial records 3) Even if your income has increased somewhat, you can still qualify for CNC if your necessary living expenses have also increased Don't panic, but be extremely accurate on the 433-F. Document EVERYTHING. Medical expenses are especially important - include all bills, explanation of benefits from insurance, etc.

Just wondering - does being in CNC status stop penalties and interest from accruing on the tax debt? I'm considering applying for it myself.

I went through this exact same situation about 6 months ago! Got the 433-F request after being in CNC for about 20 months. I was terrified they were going to kick me out because my freelance income had gone up slightly. Here's what I learned: The key is being thorough and honest about ALL your expenses, not just focusing on income changes. Document everything - rent, utilities, groceries, car payments, insurance, medical costs, childcare, etc. The IRS uses standard allowable living expense amounts, but they'll consider documented expenses above those standards if you can prove they're necessary. In my case, even though my income increased by about $6k annually, my rent had gone up significantly and I had new prescription costs that weren't there before. I made sure to include every receipt and explanation. They kept me in CNC status because my actual ability to pay hadn't really improved. The review process took about 6 weeks total from when I submitted the form. Don't ignore it - that's the one thing that will definitely get you kicked out of CNC. But don't panic either. If your financial situation is still legitimately tight, you'll likely be fine.