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I Cannot Pay the IRS at All: What Happens and What to Ask

By the Tax Relief Answers editors · Sources checked November 3, 2026 · How we check

The short answer

If paying anything would leave you unable to cover basic living expenses, you can ask the IRS to place your account in Currently Not Collectible (CNC) status, which pauses most collection. The debt is not forgiven, and penalties and interest keep growing, per the IRS page on delaying collection. The IRS also generally has 10 years from the date a tax was assessed to collect it, per the IRS collection time page.

What Currently Not Collectible does and does not do

The 10-year collection limit

Under 26 U.S.C. 6502, the IRS generally has 10 years from assessment to collect. CNC does not stop that clock. Some events do pause it, according to the IRS: a pending installment agreement request, a pending Offer in Compromise, bankruptcy, a Collection Due Process hearing, an innocent spouse request, combat zone service and living outside the US for 6 months or more. See the 10-year collection limit.

Steps

1. File every required return, even if you cannot pay. The failure-to-file penalty is 5% of the tax per month, up to 25%, compared with 0.5% per month for paying late, per the IRS failure-to-file page.
2. List your monthly income and basic living expenses, and gather bank statements and bills. This is what Form 433-F asks for.
3. Call the number on your latest notice and ask for Currently Not Collectible status, or request the hardship status by sending the financial form the IRS asks for.
4. If you can pay something, ask about a payment plan or a partial payment installment agreement instead.
5. If a levy is causing a financial hardship or the IRS has not answered by the date it promised, contact the Taxpayer Advocate Service at 1-877-777-4778 or file Form 911.

What never to do

• Ignore the notices. Starting 10 days after a notice of intent to levy, the failure-to-pay penalty rises from 0.5% to 1% per month, per the IRS failure-to-pay page, and the IRS can levy wages or bank accounts under 26 U.S.C. 6331. See wage garnishment and bank levy.
• Pay anyone who promises a result. The FTC says only the IRS or your state comptroller can decide whether you qualify for an option, warns that tax relief companies may charge an upfront fee that can be thousands of dollars, and advises against paying a whole fee up front.
• Stop filing. Unfiled years add the larger failure-to-file penalty and keep you from getting a long-term payment plan or an Offer in Compromise.

People who cannot pay at all are often the ones who qualify for free help. A Low Income Taxpayer Clinic serves people with income at or below 250% of the federal poverty guidelines, and the Taxpayer Advocate Service (1-877-777-4778) can step in when collection causes financial hardship.

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