IRS Can Reverse "Currently Not Collectible" Status, Experts Warn

Clear Start Tax explains what can trigger a return to active IRS collections

Published on Feb. 11, 2026

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Tax experts caution that taxpayers who believe their IRS debt is safely on hold may be facing a false sense of security, as the Internal Revenue Service can reverse a taxpayer's 'Currently Not Collectible' (CNC) status without much warning, sending accounts back into active collections.

Why it matters

CNC status is typically granted when a taxpayer demonstrates financial hardship and an inability to pay, temporarily halting enforcement actions. However, the IRS continues monitoring income, bank activity, and filing compliance, and can reactivate collections if anything changes or if required returns aren't filed.

The details

Common triggers for reversing CNC status include an increase in income, receipt of large sums, newly filed tax returns showing improved finances, or failure to stay compliant with ongoing filing requirements. In some cases, IRS reviews alone can result in a status change even if the taxpayer did not initiate contact.

  • CNC status is typically reviewed by the IRS every one to two years.

The players

Clear Start Tax

A national tax resolution firm that helps individuals and businesses address IRS and state tax debt, specializing in navigating complex IRS programs, compliance requirements, and collection alternatives.

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What they’re saying

“Currently Not Collectible status is more like a pause button than a resolution. The IRS continues monitoring income, bank activity, and filing compliance. If anything changes-or if required returns aren't filed-the IRS can reactivate collections.”

— Clear Start Tax spokesperson (usatoday.com)

“When CNC status is lifted, taxpayers may suddenly face bank levies, wage garnishments, or renewed collection notices. That's often a shock for people who believed their case was essentially closed.”

— Clear Start Tax spokesperson (usatoday.com)

“Taxpayers need to understand that silence from the IRS doesn't mean the issue is gone. It usually means the account is being watched.”

— Clear Start Tax (usatoday.com)

What’s next

By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.

The takeaway

Taxpayers who have been granted CNC status should not assume their IRS debt is permanently resolved, as the status can be quickly reversed due to changes in their financial situation or compliance. Proactive planning, continued compliance, and periodic review of their IRS account are critical to avoiding unexpected enforcement actions.