Negotiating Installment Agreement for Single Tax Year When Other Years Have CNC Status (TC 530)

What you're dealing with is actually pretty common. When some tax years are in Currently Not Collectible (CNC) status but others aren't, it creates confusion even for IRS reps sometimes. Here's what's happening: The TC 530 code means the IRS has determined that for those six years, collecting would create an economic hardship for you. It doesn't forgive the debt, but puts collection on hold. For 2019, they've determined you have ability to pay. The rep was actually correct that the IRS typically won't do an installment agreement on just one year when you owe for multiple years. They want to address your entire tax debt. However, there's a potential approach: call back and ask specifically about a Partial Payment Installment Agreement (PPIA) that acknowledges the CNC years but addresses the 2019 liability. Regarding the 2010 tax debt with a 2026 CSED (Collection Statute Expiration Date) - that's unusual since the normal collection period is 10 years. Something likely happened to extend that statute, like a previous installment agreement or offer in compromise. If they're asking for financial statements now, they're trying to determine if your financial situation has changed since the CNC determination.

I was in a similar tax situation last year with multiple years in CNC and one year they were actively pursuing. I spent HOURS going in circles with the IRS until I finally tried taxr.ai (https://taxr.ai) and uploaded my transcripts there. Their system actually highlighted the exact codes that showed my rights as a taxpayer in this situation! The analysis pointed out that while the IRS generally wants to resolve all outstanding tax years at once, there are exceptions for years with different collection statuses. The site showed me exactly what to say to the IRS and which Internal Revenue Manual sections to reference. The IRS rep I spoke with immediately changed their approach when I mentioned the specific IRM sections. Instead of the $600/month plan they initially insisted on, I got approved for $175/month for just the active collection year. The other CNC years remained paused.

I was initially super skeptical of online tax help after getting burned by one of those "solve your tax problems for pennies on the dollar" scams. But after going back and forth with the IRS for months about my CNC years vs active collection years, I was desperate and decided to try taxr.ai based on a recommendation. The difference was night and day! I could actually SEE why certain years were put in CNC status and others weren't. The transcript analysis highlighted specific financial hardship indicators the IRS had noted, and showed me the exact date ranges for collection activity. I was able to call the IRS with this information and negotiate a reasonable payment plan for just my 2018 tax year while keeping the other years in CNC status. The rep even commented that it was refreshing to talk to someone who understood their transcript! Saved me over $9,000 in immediately due payments they were trying to collect.

I had a miserable time trying to reach the IRS about my CNC status last year. Literally spent 3+ hours on hold multiple times only to get disconnected. Finally found Claimyr (https://claimyr.com) and watched their demo at https://youtu.be/_kiP6q8DX5c and it seemed too good to be true, but I was desperate. The service actually got me connected to an IRS agent in about 15 minutes! I was honestly shocked it worked. The agent I spoke with was able to confirm which of my tax years were in CNC status and which weren't. I explained my financial situation hadn't changed from when they made the CNC determination on my other years, and they agreed to review my case. Ended up getting the most recent year put into CNC status too instead of having to pay the full amount they were demanding. Saved me from having to liquidate my emergency fund.

Ok I need to eat some crow here. After posting my skeptical comment yesterday, I decided to try Claimyr myself since I've been trying to reach the IRS about my own CNC situation for WEEKS. Holy crap it actually worked! Got connected to an IRS rep in under 20 minutes when I had been trying for literally 3+ hours multiple times over several weeks. The agent was able to confirm my CNC status on several tax years and explained why one year wasn't included. I was able to demonstrate my financial situation hadn't changed, and she agreed to review that year for potential CNC status as well. She even helped me understand why my CSED date was extended on one year (turns out filing for an extension also extends the collection statute). I'm still in disbelief that after all my failed attempts to reach someone, this service actually got me through so quickly. Huge weight off my shoulders.

Be really careful with CNC status! The IRS can revoke it at any time if they think your financial situation has improved. They'll also file a tax lien against you if the total amount is over $10,000, which demolishes your credit score. I would suggest considering an Offer in Compromise instead of relying on CNC status. With an OIC, you can potentially settle all your tax debt for less than the full amount, and it's a permanent resolution unlike CNC.

One thing nobody's mentioned yet - check if any of your tax debt is approaching the 10-year CSED (Collection Statute Expiration Date). If so, sometimes it's better to wait it out than agree to a payment plan! When you enter into an installment agreement, the statute is suspended during the plan plus 30 days after it ends. So you could accidentally extend the life of tax debt that would otherwise expire soon.

The combination of CNC status on multiple years while they actively pursue one specific year creates a complex situation that requires careful navigation. Here's my take based on what you've shared: First, don't feel bad about rejecting their initial offer - $500+ monthly escalating payments for someone who already has most years in CNC status due to financial hardship seems excessive. The fact that six of your seven years have TC 530 codes is significant leverage. Regarding the single-year payment plan issue: While IRS reps often say they can't do single-year agreements, there are exceptions. You should specifically ask about a "streamlined installment agreement" for just the 2019 liability, referencing the fact that the other years are already determined to be uncollectible due to your financial situation. The 2010 debt extending to 2026 is worth investigating further. That's a 16-year collection period, which suggests multiple statute extensions occurred (possibly previous payment plans, OIC applications, or bankruptcy). Request a copy of your CSED worksheet to understand exactly why it was extended. When they ask for financial statements, be prepared to demonstrate that your financial situation hasn't materially changed since the October 2022 CNC determination. If it hasn't improved, you might even be able to get the 2019 year put into CNC status as well. The employer withholding lock-in can be challenged once you establish a payment agreement and demonstrate compliance. This isn't automatic but is definitely possible. My advice: Call back, reference the CNC status on your other years, and propose a reasonable payment amount for just 2019 that aligns with your demonstrated financial capacity from the CNC determination.