While “economic hardship” is one of the primary reasons, there are certain other reasons for which the IRS may place an account in Currently Non-Collectible status. Here are some of the other reasons the IRS may place an account in CNC status:
- Inability to track or locate the taxpayer
- Inability to collect from taxpayers as they reside in a foreign country
- A corporation liquidated in bankruptcy
- Death of the taxpayer and a very low possibility of collection from their estate