What Is Currently Not Collectible Status?

Currently Not Collectible (CNC) status is a temporary IRS determination that you can't afford to pay your tax debt right now based on your income and necessary living expenses. While in CNC status, the IRS suspends collection activity — no levies or garnishments. However, interest and penalties continue to accrue, and the IRS may check back periodically. If your financial situation improves, the IRS may remove CNC status. It doesn't eliminate the debt — it just pauses collection.