What Is Currently Not Collectible Status?
If you genuinely can't pay, the IRS can put your account on the shelf. Collections stops. The clock keeps running.
Currently Not Collectible means the IRS has determined you can't afford to pay. No monthly payments. No wage garnishments. No bank levies. Your account goes on the shelf.
The critical part: the 10-year collection statute keeps running. If the statute expires while you're in CNC status, the debt disappears. The IRS writes it off.
Who Qualifies
If your monthly income minus your allowable expenses (using IRS standards for housing, transportation, food, etc.) leaves nothing for the IRS, you qualify. Many people with moderate income and normal expenses meet this standard, especially if they have families.
CNC isn't permanent. The IRS reviews your account periodically. If your income increases significantly, they may reactivate collection. But for many people, CNC status combined with the running statute is the lowest-cost resolution available.