If you are currently in Currently Not Collectible (CNC) status, you are essentially in a race against time. The IRS does not have forever to collect from you. By law, they have a specific window of time to get their money, after which the debt is legally extinguished.
This "expiration date" is known as the Collection Statute Expiration Date (CSED). Understanding your CSED is the single most important factor in deciding whether to stay in CNC status or pursue a settlement like an Offer in Compromise.
Under Internal Revenue Code § 6502, the IRS has 10 years to collect unpaid taxes. This 10-year clock starts the day the tax is "assessed."
Once that date passes, the IRS must, by law, stop all collection activity. They cannot levy your bank account, garnish your wages, or even send you a bill. The debt is gone.
Most tax relief programs (like an Offer in Compromise) pause the 10-year clock. If you spend 12 months fighting for an OIC, the IRS adds 12 months to your expiration date.
Currently Not Collectible status is different. Being in CNC status does not stop the clock. While you are in hardship status, the days, months, and years continue to tick toward that 10-year expiration. This is why CNC is often the best strategy for taxpayers with 2 or 3 years remaining on their statute.
The IRS does not make your expiration date easy to find. It won't be listed on the front page of your tax return or on a standard bill. Here are the three ways to find it in 2026:
This is the most accurate method. You can request your transcripts through the IRS "Get Transcript" tool.
The CSED is rarely a simple 10-year window. Certain actions "toll" (pause) the statute. If you have done any of the following, your date will be pushed back:
If you (or your tax professional) call the IRS, you can ask the agent specifically for the "CSED for each tax year." They are required to provide this information. However, be careful—sometimes talking to the IRS can trigger them to ask for updated financial information, which could jeopardize your CNC status.
Once you know your CSED, you have a math problem to solve.
When the date arrives, the IRS computer system automatically generates a Transaction Code 608, which zeros out the balance. If the IRS had filed a Notice of Federal Tax Lien against your property, that lien becomes "self-releasing" once the CSED passes, meaning your title is cleared.
Don't guess when your tax debt expires. Knowing your CSED allows you to take control of the negotiation. If the IRS knows they only have a few months left to collect, they may be more aggressive—but they also lose their leverage once that clock hits zero.