Currently Not Collectible
Currently not collectible is a status where the IRS deems the taxpayer is unable to pay their outstanding tax liabilities. The taxpayer needs to prove that they do not have the assets and/or income that will suffice to cover the IRS debt.
This status temporarily suspends any active collections against the taxpayer. It will stop threatening letters, harassing calls, levies, and any other collection enforcement until the taxpayer's financial situation improves.
Applying for currently not collectible status buys the taxpayer time but it does not resolve the outstanding tax issue so interest continues to run and the IRS may still file a Notice of Federal Tax Lien to secure its interest in anything the taxpayer owns or after-acquires.
The 10-year statute of limitations still continues while the noncollectable status is in place so the tax debt can expire which is beneficial for the taxpayer!