The short answer
Not in general. The IRS may accept an offer in compromise for less than you owe, or pause collection if you can't pay. A debt can also end when the 10 year collection time runs out. Currently not collectible status is not forgiveness. You still owe the full amount and interest grows.
Penalties can be removed with First Time Abate or reasonable cause, but the tax itself stays.
Words to know
- Currently not collectible (CNC)
- A status where the IRS pauses most collection because you can't pay basic living costs. You still owe the debt.
- First Time Abate (FTA)
- IRS relief from some penalties if you filed and paid on time for the 3 years before.
- Offer in compromise (OIC)
- A deal where the IRS agrees to take less than the full amount you owe. It costs $205 to apply, plus a first payment.
- Reasonable cause
- A good reason you couldn't file or pay on time, like a fire, a disaster or a serious illness.