IRS notice CP71C
CP71C notice: an unpaid balance that needs attention
A CP71C means you still have an unpaid balance on one of your tax accounts, and the IRS says it needs your immediate attention. The notice also explains that the State Department can deny or revoke a passport for seriously delinquent tax debt.
What to do
Pay the balance; interest and penalties stop being added as soon as it is paid in full. Paying online gives instant confirmation; otherwise mail the payment in the envelope sent, with the bottom part of the notice.
If you cannot pay it all, pay as much as you can and set up a payment plan for the rest; the Online Payment Agreement tool tells you immediately whether your plan is approved. The IRS may temporarily delay collection if you are facing financial hardship, and under certain circumstances an offer in compromise lets you settle for less than the full amount. The IRS’s Offer in Compromise Pre-Qualifier tool shows whether you might qualify.
If you already paid or set up a plan
Payments can take up to 21 days to post. If you paid the balance in full within the last 21 days, the IRS says to disregard the notice. If you have an approved installment agreement, keep making the payments; if you applied but have not been approved, pay as much as you can now to stop more interest and penalties being added.
What happens if you do not respond
The IRS may file a Notice of Federal Tax Lien, subject to any Collection Due Process rights, and may assign your account to a private collection agency. Interest continues to accrue, and more penalties may apply.
If a private collection agency contacts you, know the rules: the IRS assigns cases only after telling you in writing, the agencies will not ask for payment on a prepaid debit card or gift card, and a payment by check goes to the IRS, made out to the U.S. Treasury, not to the agency.
Returns to file before you can set up a plan?
The IRS generally wants every required return filed before it agrees to a long-term payment plan, and a notice can be the first sign that a year is missing. USTAXX prepares current and past-due returns, one year at a time, so the account is complete. We are an IRS Authorized e-file provider and work with clients remotely through a secure portal, by phone or video, and in person at our office in Naperville, IL.
Questions people ask
What is a CP71C notice?
A notice that you still have an unpaid balance on a tax account that needs your immediate attention. It also explains the passport consequences of seriously delinquent tax debt.
Can the IRS send my account to a collection agency?
Yes. If you do not pay or set up a plan, it may assign your account to a private collection agency, but only after notifying you in writing.
I already paid. Why did I get a CP71C?
Payments can take up to 21 days to post. If you paid in full in the last 21 days, the IRS says to disregard the notice.
Where these rules come from
- IRS: Understanding your CP71C notice
- IRS: How to know it’s really the IRS calling or knocking on your door
- IRS: Publication 594, The IRS Collection Process
- IRS: Payment plans and installment agreements
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.