CURRENTLY NON-COLLECTIBLE
When due to a taxpayer's severe financial hardship, a taxpayer cannot afford to pay the IRS any money towards their tax liability, the IRS will place the account in a "Currently Non-Collectible" (CNC) status, during which no enforced collection action will occur. Taxpayers should be aware that this status is for a fixed period of time after which the IRS will request an update on finances to determine if the status should continue. In addition, penalties and interest continue to accrue while classified CNC.
