One who receives an IRS CP71C letter, it is because the IRS is owed money for tax, penalty and interest, and one is likely in Currently Non-Collectable status. Currently, Non-Collectable status means one is in financial hardship and unable to pay the IRS. The IRS is not pursuing collections but they do inform the taxpayer of the outstanding tax balances. Currently Non-Collectable status doesn’t eliminate one's tax balance.