What the notice means
IRC 7524 requires it: “Not less often than annually, the Secretary shall send a written notice to each taxpayer who has a tax delinquent account of the amount of the tax delinquency as of the date of the notice.” IRM 3.14.1.3.2 lists the CP71 as “Taxes Still Owed - Annual Reminder.” The IRS CP71 page says the notice was sent because there is still an unpaid balance that requires immediate attention, and that it also explains the State Department's ability to deny or revoke a passport for seriously delinquent tax debt.
The notice does not add a new liability or a new appeal right. It restates the current balance with accrued interest and penalties.
Why the client got it
The variant tells you where the account sits:
| Notice | Account situation | Source |
|---|---|---|
| CP71 | Unpaid balance; annual reminder | IRM 3.14.1.3.2; IRS CP71 page |
| CP71A | Account in non-collectable status. The IRS page: the account will remain there until the financial situation changes | IRS CP71A page |
| CP71C | Issued semi-annually for delinquent accounts in Status 24 (the queue) for at least one year | IRM 3.14.1.6.11.17 |
| CP71D | Unpaid balance; the IRS page tells taxpayers already working with a revenue officer to contact them | IRS CP71D page |
IRM 3.14.1.6.11.17 shows how persistent these reminders are: even when an innocent spouse claim freeze stops other notices and offsets, the CP71C still issues. IRM 8.20.5.24.7 says the same freeze stops notices “except for CP 521, Monthly Reminder on Installment Agreements, and CP 71, Annual Reminder Notice of Balance Due.” If the client filed Form 8857 and still receives a CP71, that is expected; see innocent spouse relief.
For a CP71A, the client is in currently not collectible status. The IRS page says that if the financial situation has not changed, the taxpayer does not need to do anything, but should keep filing timely so the IRS can see changes.
Deadlines and what happens if they pass
There is no response deadline in the CP71 itself. The clocks that matter run elsewhere:
- The collection statute. Publication 594: “We can attempt to collect your taxes up to 10 years from the date they were assessed,” subject to suspensions for installment agreement and offer requests, CDP hearings, bankruptcy and other events. A CP71 is a good prompt to compute the CSED for each period using the statute date calculator.
- Interest and penalties. The IRS page says interest accrues on the unpaid balance until paid in full and the late payment penalty applies.
- Refund offsets. The IRS page warns that future tax refunds may be offset until the balance is paid.
- Passport certification. The IRS page says the State Department may revoke or decline to issue or renew a passport if the taxpayer is certified as having seriously delinquent tax debt. See passport certification.
The CP71D page adds that if the balance is not paid or arranged, the IRS may file a Notice of Federal Tax Lien, subject to any CDP rights, and may assign the account to a private collection agency.
How to respond
- Identify the variant and pull the account transcript for each listed period. Confirm status (queue, not collectible, field) and the assessment dates for the CSED.
- If the client paid recently, the IRS page says payments can take up to 21 days to post and to disregard the notice if the balance was paid in full within that time.
- If an installment agreement is in place, keep paying under it. The IRS page says approved agreements continue; if an agreement is pending, pay as much as possible meanwhile.
- If the client can now pay something, consider an installment agreement (online, by phone or with Form 9465). See installment agreements.
- If the client cannot pay, the IRS page mentions a temporary delay of collection for hardship and an offer in compromise. Run the numbers against the collection financial standards.
- For a CP71D, contact the assigned revenue officer rather than the toll-free line, as the IRS page instructs.
- If the client disagrees with the balance, call the toll-free number on the notice with proof of payment or other support, as the IRS page says.
A CP71A does not mean the debt is gone. Currently not collectible status suspends active collection, but interest and penalties continue and the IRS can revisit the account if income changes. Refunds may still be offset.
What the IRS does next
Nothing new is triggered by the CP71 itself. What happens next depends on account status: queued accounts may be assigned to the Automated Collection System, a revenue officer or a private collection agency; not collectible accounts stay inactive unless filed returns show improved ability to pay; field accounts continue with the revenue officer. The reminders continue each year until the balance is paid or the collection statute expires.
Related notices
- CP14: the first bill on the balance.
- CP504: the notice of intent to levy.
- LT16: the ACS request to call.
Questions practitioners ask
Why does the client get a CP71 when the account is not collectible?
IRC 7524 requires a written notice of the delinquency at least annually. The CP71A is the version for non-collectable accounts; the IRS page says no action is needed if finances have not changed.
Does a CP71 restart or extend the collection statute?
Nothing in IRC 7524 or the IRS notice pages ties the reminder to the collection period. The CSED runs from assessment and is suspended only by events such as installment agreement or offer requests, CDP hearings and bankruptcy (Publication 594).
The client filed for innocent spouse relief. Why the reminder?
The innocent spouse freeze stops most notices and offsets, but IRM 3.14.1.6.11.17 says the CP71C still issues, and IRM 8.20.5.24.7 says the same of the CP71.
Can a CP71 lead to a passport problem?
The IRS page explains that the State Department may deny or revoke a passport if the IRS certifies seriously delinquent tax debt. See passport certification for the criteria and exceptions.