IRS Notice CP71C: What It Means and What to Do
The IRS sends the CP71C once a year to remind you that you still owe tax, penalties and interest for a past year. It also explains that a seriously delinquent tax debt can lead the State Department to deny or revoke your passport. If you are already on a payment plan, or the IRS told you it paused collection because of hardship, you generally do not need to do anything.
CP71C key facts
| Official name | Annual reminder of balance due taxes: you still have an unpaid balance on one of your tax accounts and it requires your immediate attention |
|---|---|
| Who gets it | Individuals |
| Severity | 3 of 5: Moderate: respond by the deadline It is a reminder of a balance you owe that calls for payment or an arrangement, but it is not itself an enforcement notice. |
| Response window | Pay the amount due by the date shown on the notice to prevent interest and applicable penalties from continuing to increase. If you already have a payment plan, or the IRS told you it suspended collection due to hardship and your finances have not changed, you don't need to do anything. |
| Deadline basis | The date printed on the notice. |
Severity is RAHA Financials' own 1 to 5 rating of how urgent the notice usually is. It is not an IRS classification.
How long do I have to respond to a CP71C?
Use the date printed on your notice. The IRS doesn't give a fixed number of days for CP71C. Use the date printed on your notice.
The date printed on your notice always controls. Open CP71C in the IRS Notice Decoder.
Why did I get a CP71C?
Common reasons include:
- A balance from a prior tax year is still unpaid
- You are paying the balance through an installment agreement, and the IRS still sends the yearly reminder
- Your account was placed in a hardship (currently not collectible) status, so the debt remains open
- Penalties and interest continued to build on a balance that was only partly paid
What should I do?
- Read the notice and check which tax year and amount it lists.
- If you already have an installment agreement or a hardship status and nothing has changed, keep your records; no action is generally needed.
- If you agree and can pay, pay the balance in full by the date on the notice (online through IRS payment options or by mail with the payment stub) to stop interest and penalties from growing.
- If you can't pay in full, pay what you can now and apply for a payment plan online, or use Form 9465 or call the number on your notice.
- If you are in financial hardship, ask the IRS about a temporary delay of collection, or check whether an offer in compromise may fit your situation.
- Sign in to your IRS Online Account to view your balance and payment history, and allow up to 21 days for a recent payment to post.
What documents do I need?
- The CP71C notice and any earlier balance-due notices for the same year
- Your tax return for the year listed
- Proof of payments made (bank records, canceled checks, payment confirmations)
- Your installment agreement or any IRS letter about a hardship or collection status
- Current income and expense information if you plan to request a payment plan or hardship status
What should I avoid?
- Don't assume the notice means your payment plan was canceled; it is sent even to people on a plan.
- Don't ignore it if you have no arrangement in place, since interest and penalties keep growing.
- Don't send a payment without the notice's payment stub or your SSN, tax year and form number written on it.
What if I disagree with a CP71C?
Call the phone number on your notice to review your account with a representative, and have your payment records and supporting documents ready. The IRS says it will assume you agree if it doesn't hear from you.
What happens if I ignore a CP71C?
If you don't pay or make an arrangement, interest and applicable penalties generally keep adding up, and the IRS will keep sending annual reminders until the collection period expires. The IRS may file a Notice of Federal Tax Lien or levy, subject to any Collection Due Process rights, and a seriously delinquent tax debt may be certified to the State Department, which can deny or revoke a passport.
What else should I know about CP71C?
The CP71C is a reminder, not a new bill or a new problem. The IRS sends it every year that an individual balance stays open, even to people on an installment agreement or in hardship (currently not collectible) status. For them, the IRS's own sample notice says no action is needed. That makes it different from the CP501, CP503 and CP504 series, which escalate toward enforcement. What matters more is what the notice says about the passport rules: once a debt meets the seriously delinquent threshold, the IRS can certify it to the State Department. So people who have no arrangement in place, and who have international travel coming up, should treat it as a reason to act.
Want a professional to handle your CP71C response?
IRS Notice Response Plan
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- Review of your notice and account transcript
- A written plan: agree, partly agree, or dispute
- Draft response and list of supporting documents
- Deadline tracking so nothing lapses
CP71C: frequently asked questions
I already have a payment plan. Why did I get this?
The CP71C is an annual reminder the IRS is required to send about a balance you still owe. The sample notice says that if you already have an installment agreement, or the IRS told you it suspended collection because of hardship and your situation hasn't changed, you don't need to do anything.
Will interest keep adding up?
Yes. The IRS says interest accrues on your unpaid balance until you pay it in full, and a late payment penalty may also apply.
I just made a payment. Why does the notice still show a balance?
The IRS says payments can take up to 21 days to post to your account.
Can this affect my passport?
It can. Under the FAST Act, the IRS may certify a seriously delinquent tax debt to the State Department, which generally will not issue or renew a passport and may revoke a current one. Paying or setting up an arrangement can help avoid this.
