Currently Not Collectible (CNC) status is a temporary IRS designation that indicates a taxpayer’s inability to pay his or her tax debt due to financial hardship. Under this status, the IRS suspends collection activities for a specified period. However, the tax debt remains outstanding and continues to accrue interest and penalties. The taxpayer must demonstrate that paying the debt would cause extreme financial hardship. It is important to seek advice from tax professionals to guide you through the process and provide the necessary financial documentation.