Question 1

What is an IRS Offer in Compromise?

Accepted Answer

An Offer in Compromise (OIC) allows qualifying taxpayers to settle their federal tax debt for less than the full amount owed. The IRS considers your ability to pay, income, expenses, and asset equity. Acceptance rates are around 40%, and the average accepted offer settles for roughly 20 cents on the dollar.

Question 2

What is Currently Not Collectible (CNC) status?

Accepted Answer

Currently Not Collectible status means the IRS temporarily stops collection activity because you cannot afford basic living expenses and your tax debt. The IRS reviews your status periodically. Interest and penalties continue to accrue, but you will not face liens, levies, or garnishment while in CNC status.

Question 3

How long does the IRS have to collect tax debt?

Accepted Answer

The IRS generally has 10 years from the date of assessment to collect a tax debt. This is called the Collection Statute Expiration Date (CSED). Certain actions — like filing for bankruptcy or requesting an installment agreement — can pause or extend this clock.

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