IRS notice
IRS Notice CP71C: Annual Reminder of Taxes You Still Owe
An annual IRS reminder of the tax, penalties and interest you still owe, with a warning about passport denial for seriously delinquent debt.
Read it and keep it
There is usually no new legal deadline on a CP71C; if you have no plan or hardship status in place, act promptly, because interest and penalties keep accruing and the IRS may take collection steps.
A CP71C is generally an annual reminder of a balance you still owe the IRS, including tax, penalties and interest, and it warns that seriously delinquent tax debt can lead to passport denial or revocation. If you already have a payment plan or your account is in currently not collectible status, it is a reminder and no action is required. Otherwise, the balance needs prompt attention.
What this notice is telling you
- The IRS is restating, as an annual reminder, the unpaid balance on one or more of your tax accounts.
- It is sent even if you are on a payment plan or the IRS has placed your account in currently not collectible status because of hardship.
- Interest continues to accrue until the balance is paid in full, and the late payment penalty applies.
- It also tells you that seriously delinquent tax debt can lead to passport denial or revocation under the FAST Act.
What to do
Work out which group you are in
If you have an approved payment plan, keep paying as agreed. If the IRS has your account in currently not collectible status, no action is required. If neither applies, keep reading.
Compare the balance with your records
Check the years and amounts. Payments can take up to 21 days to post, so if you paid in full within the last 21 days you can disregard the notice; confirm in your Online Account's balance details.
If there's no arrangement, choose one
Pay in full online or by mail with the notice stub, pay what you can and set up a payment plan through the Online Payment Agreement tool or Form 9465, or ask about a temporary collection delay if you are in financial hardship.
Ask about penalty relief separately
If you may qualify to have penalties or interest reduced, the IRS points to Form 843 or a signed statement explaining your reasons. Notice 746 explains penalties and interest.
Update your address if it has changed
Use Form 8822 so future notices reach you. Later notices, including any lien or levy notice, go to the address the IRS has on file.
Why you get this every year even with a plan
Many people are alarmed to get a CP71C after they have already arranged a plan or been granted hardship status. The Taxpayer Advocate Service confirms the IRS sends it in both situations: it is a statement of where the account stands, not a sign the arrangement has failed. The useful thing to do with it is to check that the balance is shrinking the way you expect and that every payment has been credited.
| Your situation | What to do |
|---|---|
| Approved payment plan | Keep making payments as agreed |
| Payment plan request pending | Pay as much as you can to limit added interest and penalties |
| Currently not collectible (hardship) | No action required; it is a reminder |
| No arrangement | Pay, set up a plan, ask about a collection delay, or consider an offer in compromise |
| You disagree with the amount | Call the number on the notice with records such as canceled checks or an amended return |
If you have no arrangement and do nothing
The IRS lists what can follow: a Notice of Federal Tax Lien, subject to your Collection Due Process rights; assignment of the account to a private collection agency; and continued interest and penalties. The notice's passport warning sits on top of those steps.
Checking whether a settlement could fit
If the balance is larger than you could realistically pay, the IRS's Offer in Compromise Pre-Qualifier tool gives a first indication of whether an offer may be possible. It is a screening tool, not an approval.
Where this notice sits
The usual order. Not every account gets every notice, and some steps can be skipped.
Want a CPA to deal with it?
Bring the notice to a free consultation, in person on James Island or by video. We read it with you, tell you what it means for your account and, if you want us to, take over the response once you sign Form 2848.
IRS & SCDOR letters — Find your notice number below, see what it means and which date matters, then let a licensed CPA deal with the IRS or SCDOR on your behalf.
By Haigler CPA Group. Updated . Notices are revised from time to time, so go by the wording and dates on your own notice. The information on this site is general in nature and is not tax, legal, or accounting advice for your situation. Tax law changes and the right answer depends on facts we would need to review with you. Please speak with a qualified professional before acting on anything you read here.
Questions about CP71C
I'm in currently not collectible status. Do I need to respond to a CP71C?
No. The Taxpayer Advocate Service says that if your balance is currently not collectible because of hardship, the notice is a reminder and no action is required.
Is the passport warning aimed at me?
It appears on the notice generally. Under the FAST Act, passport issuance or renewal is generally prohibited only for seriously delinquent tax debt. The IRS has a separate page on passport denial or revocation for certain unpaid taxes that explains the rules.
Can a private collection agency contact me about this balance?
Yes. The IRS lists assignment to a private collection agency as one possible result of not responding to a balance like this.
Does interest stop while I'm on a plan?
No. Interest accrues until the balance is paid in full, which is why the CP71C balance can look higher than you expect even when you pay every month.
Other notices
- CP521: Monthly payment plan reminderA reminder that your monthly IRS payment plan installment is due by the date shown, with the amount and how to pay it.
- CP49: Your refund was applied to a tax debtThe IRS used all or part of your refund to pay a tax debt you owe; the notice shows how it was applied and any amount still due.
- IRS notice lookupEvery IRS notice carries a code. Find yours below to see what it generally means, which date matters, and what to do before that date passes.
Talk to a tax expert
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