Currently Not Collectible

Statute Expiration Confirmed and Balance Closed

Balance expired

Illustrative outcome

This is an illustrative example of our work in currently not collectible. Below is the situation, how an IRS Enrolled Agent approaches it, the outcome those tools can produce, and what it means for anyone facing something similar.

Focus area

Currently Not Collectible

Result

Balance expired

Client

Long-term taxpayer

The client & the challenge

An old balance was still generating notices near the end of the collection period.

Our approach

Reviewed the account transcript and confirmed the collection statute expiration date.

How we build the resolution

1
Prove there is no ability to pay
We prepare a financial statement showing that after allowable living expenses, nothing is left to pay the IRS.
2
Request hardship status
We ask the IRS to place the account in Currently Not Collectible status, which suspends levies and active collection.
3
Watch the collection statute
The 10-year collection period keeps running while in this status, so part of the balance can expire before collection resumes.
4
Reassess as things change
We monitor the account and revisit the resolution if your finances improve or the statute nears expiration.

The outcome

The remaining balance expired and the account closed.

Balance expiredin this example

Understanding Currently Not Collectible status

When paying anything would prevent covering basic living expenses, the IRS can pause active collection by placing the account in Currently Not Collectible status.

Facts worth knowing

A financial statement establishes that there is no ability to pay.
Collection is suspended while the hardship continues.
The balance remains and interest accrues, but levies stop.
The collection statute may expire while in this status.

Frequently asked questions

What if I genuinely cannot pay anything?

The IRS can place the account in Currently Not Collectible status, which suspends levies and active collection while the hardship continues.

Does the debt go away?

The balance remains and interest accrues, but collection stops — and the 10-year collection statute keeps running, so part of it can expire while in this status.

How long does it last?

Until your finances improve enough to revisit, or the collection statute expires. We monitor the account either way.

Key takeaways

Outcome in this example: Balance expired.
Service applied: Currently Not Collectible.
Handled by a federally licensed IRS Enrolled Agent, start to finish.
Available to individuals and businesses nationwide.
The sooner you act, the more options remain — penalties and interest keep accruing.

Facing something similar?

Get a free, no-pressure consultation with a licensed IRS Enrolled Agent who can tell you exactly where you stand.

Book a Free Consultation (562) 925-7100

This case study is an illustrative example of the types of matters we handle and the tools we use. It is a composite created for explanation and does not describe a specific client, and any figures shown are examples rather than actual client outcomes. Every case is different: your result depends on your own facts and on IRS determinations, and no particular outcome is promised.

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