If there is unquestionably no way for you to pay your tax debt, and no way for the IRS to raise the money owed via the more conventional forms of tax resolution, you can register for “currently not collectible” status.

The IRS will not be able to obtain any owed taxes or fines if:

• Your wages meet no more than your required living expenses so that there is no outlay the IRS can garnish
• You have no assets that can be levied. Remember that the IRS cannot take an asset if you have less than 20 percent stake in the item or if the costs involved in seizing and auctioning it are more than the property is worth, which makes the IRS attempting another form of tax resolution.