Does Currently Not Collectible status stop the IRS from taking my refund?

No, CNC status does not prevent the IRS from offsetting (seizing) your tax refunds. Even while in CNC status, any federal tax refund you're owed will be automatically applied to your outstanding tax debt. This is because the refund offset is handled by the Treasury Offset Program, which operates separately from IRS collection. Additionally, state tax refunds may also be offset under agreements between the IRS and state tax agencies. To avoid losing refunds while in CNC status: adjust your W-4 withholding so you're not overpaying throughout the year (aim to owe slightly at filing time rather than receiving a refund), ensure estimated payments are accurate rather than excessive, and be aware that stimulus payments and refundable credits may also be offset. While losing a refund is frustrating, CNC status is still valuable because it prevents much more harmful actions like wage garnishment, bank levies, and property seizures. The refund offset is the only collection action the IRS takes against taxpayers in CNC status, and for many taxpayers, the trade-off is worthwhile.