Will You Qualify for Currnetly Non Collectible Status?

For some, paying the IRS their back taxes is almost impossible. Not the, "No, I really don't want to give up my cable so I can pay the IRS" impossible, but truly hard. For whatever reason, their financial status just doesn't permit payments.

When you're in this situation Currently Non Collectible (CNC) status may be right for you. How do you know though?

The "means test" for bankruptcy is a "litmus" test to determine whether you qualify for CNC.

The "means test" is a calculation of bankruptcy that provides the minimal level of income that a household can generate in order to qualify for Chapter 7 Bankruptcy (i.e. liquidation of assets and debts). The Bureau of Labor Statistics (BLS) is used to determine this level of income allowed (based on number in family and the state you reside) to be able to qualify for Chapter 7.

Generally (and you have to verify with documentation), if a person qualifies for Chapter 7 under the BLS, then you would qualify for CNC (subject to documentation and inability to liquidate assets/full payment of liquid assets).

For example, if a 2-person household in NC has $40,000 in income, $52,355 would be the amount of income they would normally be allowed to have to file for Chap 7. Also, this is the maximum allowable living expenses that would correlate to a potential CNC.

See below for the chart.

State	One Earner	2 Person Families	3 Person Families	4 Person Families
Alabama	$36,870	$46,647	$53,093	$63,951
Alaska	$49,325	$71,550	$72,079	$91,754
Arizona	$43,397	$57,620	$62,002	$71,867
Arkansas	$33,623	$45,435	$48,909	$56,822
California	$49,182	$65,097	$70,684	$79,971
Colorado	$46,765	$65,668	$70,838	$78,905
Connecticut	$57,505	$70,827	$85,315	$103,408
Delaware	$46,187	$60,747	$77,174	$79,006
District of Columbia	$42,340	$72,724	$72,724	$72,724
Florida	$42,468	$53,939	$60,162	$71,124
Georgia	$40,760	$54,054	$61,959	$71,554
Hawaii	$52,784	$66,227	$73,187	$88,863
Idaho	$40,910	$51,946	$54,633	$66,939
Illinois	$47,355	$60,049	$68,730	$81,184
Indiana	$41,697	$53,169	$61,164	$70,518
Iowa	$41,381	$54,628	$63,888	$74,047
Kansas	$41,004	$56,146	$63,245	$74,626
Kentucky	$36,628	$45,474	$55,391	$65,520
Louisiana	$36,945	$46,741	$52,628	$66,634
Maine	$40,618	$52,065	$64,342	$69,714
Maryland	$55,543	$73,947	$84,952	$103,719
Massachusetts	$54,842	$66,437	$83,104	$100,280
Michigan	$44,703	$53,575	$63,339	$76,312
Minnesota	$47,592	$62,073	$75,603	$87,634
Mississippi	$32,348	$41,934	$46,470	$55,759
Missouri	$39,563	$51,612	$58,473	$70,363
Montana	$39,484	$52,796	$52,796	$65,175
Nebraska	$37,803	$53,453	$62,814	$72,179
Nevada	$48,194	$60,557	$65,783	$74,735
New Hampshire	$55,766	$65,751	$77,008	$93,186
New Jersey	$57,120	$69,853	$85,397	$103,034
New Mexico	$35,913	$48,708	$53,018	$56,009
New York	$46,523	$57,006	$67,991	$83,036
North Carolina	$38,478	$52,355	$57,301	$70,134
North Dakota	$38,226	$53,389	$67,644	$71,751
Ohio	$42,458	$52,922	$62,251	$74,234
Oklahoma	$38,244	$51,322	$54,494	$62,049
Oregon	$45,176	$56,317	$61,046	$72,735
Pennsylvania	$44,688	$53,011	$67,262	$78,780
Rhode Island	$46,466	$59,314	$72,809	$91,415
South Carolina	$38,728	$50,823	$54,834	$65,974
South Dakota	$35,533	$51,068	$58,135	$69,002
Tennessee	$37,702	$48,729	$55,190	$64,615
Texas	$38,545	$54,908	$57,053	$66,400
Utah	$48,832	$56,816	$63,796	$71,919
Vermont	$40,876	$58,480	$64,312	$75,938
Virginia	$49,689	$65,342	$73,191	$85,769
Washington	$50,656	$63,521	$69,577	$82,445
West Virginia	$38,706	$42,865	$50,997	$59,762
Wisconsin	$42,816	$57,657	$67,103	$77,760
Wyoming	$46,265	$60,442	$68,568	$80,405
Commonwealth or U.S. Territory	One Earner
		2 Person Families	3 Person Families	4 Person Families
Guam	$36,019	$43,066	$49,076	$59,389
Northern Mariana Islands	$24,187	$24,187	$28,141	$41,390
Puerto Rico	$20,715	$20,715	$23,631	$26,822
Virgin Islands	$28,577	$34,348	$36,621	$40,123

Further Reading:

What is Currently Non Collectible Status?