Currently Not Collectible (CNC)

Full Definition

Currently Not Collectible (CNC) is a status the IRS grants when collecting a tax debt would prevent the taxpayer from meeting basic living expenses. While in CNC status, the IRS suspends active collection efforts like levies and garnishments. However, interest and penalties continue to accrue, and the IRS will continue to apply any tax refunds to the debt. The IRS periodically reviews CNC accounts to determine if the taxpayer's financial situation has improved.