Currently Not Collectible:

Under some circumstances, the IRS may agree to place you in Currently Not Collectible. In general, the IRS will suspend collection activities for usually one year if it believes that it cannot currently collect the tax liability.

Once the IRS declares a taxpayer currently not collectible, the IRS must stop all collection activities, including levies and garnishments. The IRS must send an annual statement to the taxpayer stating the amount of tax still owed. This annual statement is not a bill.

 

While in not collectible status, the 10-year statute of limitations on tax debt collection is still running.

If the IRS cannot collect the tax within the 10-year statutory period, then the tax debts will expire.

Being declared "currently not collectible" is one of five ways to get out of tax debt. A taxpayer facing significant financial hardships or tax debt burdens should seek the advice of a tax professional specializing in tax debts.
 
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