Currently Not Collectible
Currently Not Collectible (CNC) status is granted by the IRS when your financial information shows you can’t afford to pay anything toward reducing your back taxes. CNC status is reserved for those who meet IRS guidelines for having no disposable income after paying the IRS-approved expenses for your county. You can’t live a lavish lifestyle and expect to get CNC status. But, if you’re living paycheck to paycheck, you may qualify.
You’ll have to periodically prove you’re still eligible for CNC status. If you keep CNC status until the Collection Statute Expiration Date (CSED), you’ll never have to pay the taxes. But, living such a Spartan existence for a long period of time is seldom the ideal solution.