7.1.3 Effect of CNC Status

7.1.3 Effect of CNC Status aetrahan Thu, 02/02/2023 - 09:27

CNC status suspends collection but does not forgive or compromise the tax or release liens. As a result, interest and penalties continue to accrue. The IRS will also continue to offset future tax refunds. However, because CNC status does not toll the collection limitation period, the 10-year statute of limitation for collection continues to run.