They still deserve a careful read. This guide explains what each notice means, what to check on it, when to respond, and how to tell it apart from identity-verification letters like CP5071. It also covers a practical response process: verify the tax year and balance, confirm any existing payment arrangement, use only official IRS contact details, and know when professional help makes sense.
Key Takeaways
- Read CP71 and CP71C closely, even though they aren't final notices of intent to levy.
- Confirm the tax year, balance, penalties, interest and payment history against your IRS account.
- Resolve the balance with full payment, an installment agreement, hardship status, penalty relief or an Offer in Compromise.
- Do not confuse CP71 with CP5071, which is an identity-verification notice only.
What Do IRS Notices CP71 and CP71C Mean?
Both notices tell you that an unpaid balance remains on your tax account. The Taxpayer Advocate Service describes CP71C as an annual reminder of tax, penalties and interest owed.
CP71 vs. CP71C
| Feature | CP71 | CP71C |
|---|---|---|
| Core message | Unpaid balance on one tax account | Same basic unpaid-balance wording |
| Passport language | Explains the State Department's ability to deny or revoke a passport for seriously delinquent tax debt | Same |
| Extra warning | Continuing interest and penalties | IRS may file a Notice of Federal Tax Lien or assign the account to a private collection agency if you don't pay or set up a plan |
| Other note | IRS page doesn't call it "annual" | TAS says it can arrive during a payment plan or currently-not-collectible status |
The passport language doesn't mean your passport has already been revoked. Treat it as a warning to resolve the debt.
What to Find on the Notice
- Notice date and the CP number (printed in the upper right corner)
- Tax year or period, and the total balance
- Breakdown of tax, penalties and interest
- Payment instructions and response deadline
- The toll-free number printed on the notice
Why It May Arrive After You've Acted
The IRS says payments can take up to 21 days to post. If you paid in full in the last 21 days, disregard the notice. If you have an approved installment agreement, keep making payments.
TAS also confirms CP71C may arrive during an installment plan or currently-not-collectible status. If the debt is already handled that way, no additional action is needed.
Not a Final Notice of Intent to Levy
Neither notice is a final notice of intent to levy. Still, the CP71C warns of a possible lien or private collection assignment, so ignoring either one is a mistake.
What Should You Do After Receiving CP71 or CP71C?
Start by keeping the full notice. Then confirm it's real. Search IRS.gov for the notice number.
If it looks suspicious or you can't find it, IRS notice guidance says to call 800-829-1040. Don't trust unsolicited calls, emails, or links.
Verify the Balance
Your IRS Individual Online Account shows balances by tax year, up to five years of payment history, and scheduled payments. Compare against:
- Your filed returns and any amended returns
- Payment confirmations and bank records
- Account transcripts (generally available for the current and nine prior tax years)
- Prior IRS correspondence for the same year
If Something Looks Wrong
Already paid? Believe the balance is wrong? A payment landed on the wrong year? Gather documentation first: proof of payment, returns, and letters.
If the notice contains an error in its calculations or assessment, write back explaining it and ask the IRS to fix it. Send supporting documents by the notice due date to preserve appeal rights.
If You Have an Active Arrangement
Confirm these points still hold:
- Agreement is still active
- Payments are posting correctly
- All required returns are filed
- No missed payment has changed your status
Keep a Paper Trail
- Follow the instructions and deadlines on the notice.
- Keep copies of everything you send and receive.
- Log call dates, representative names, and confirmation numbers.
- Recheck your account after any payment or IRS conversation.
What Are the Ways to Address an IRS Balance?
Pay in Full or Make a Partial Payment
Paying a verified balance in full resolves the liability. A partial payment lowers what you owe, but it doesn't replace a formal arrangement. Interest and some penalties keep accruing until the balance is paid off.
Set Up an Installment Agreement
If you can't pay in full, a payment plan buys time. Current IRS user fees for individuals, per the IRS payment plan page:
| Plan | Online eligibility | Fee |
|---|---|---|
| Short-term (up to 180 days) | Under $100,000 owed | $0 |
| Long-term, Direct Debit | $50,000 or less, all returns filed | $29 online; $107 by phone, mail or in person |
| Long-term, other payment method | Same | $69 online; $178 otherwise |
| Low-income long-term | AGI at or below 250% of poverty level | Direct Debit fee waived; $43 otherwise |
Interest and penalties continue while you pay.
Consider Currently-Not-Collectible Status
If paying would leave you unable to cover basic living expenses, the IRS may temporarily delay collection. You may need to submit Form 433-F, 433-A or 433-B plus proof of income, expenses and assets.
CNC status does not erase the debt:
- Penalties and interest continue to accrue
- Levies may be suspended while status holds
- A federal tax lien can still be filed
- Refunds may be applied to the balance
Evaluate an Offer in Compromise or Penalty Relief
An Offer in Compromise (OIC) can settle for less than you owe, but only if you qualify. The IRS generally won't accept an offer when you can pay in full through assets or a plan. Requirements include:
- All required returns filed and estimated payments made
- No open bankruptcy
- A $205 application fee and initial payment (waived for qualifying low-income individuals)
- For lump-sum offers, 20% of the offer amount with the application
Try the IRS OIC Pre-Qualifier first.
Penalty relief is separate. Reasonable cause requires showing ordinary care and prudence; lack of funds alone isn't enough. First Time Abate generally requires a clean penalty record for the prior three years, and the failure-to-pay penalty keeps growing until you pay in full.
Get Current on Missing Returns and Records First
Unfiled returns and incomplete records stall every option above. File all past-due returns even if you can't pay; the IRS may otherwise prepare a substitute return that omits deductions and inflates your liability.
When the balance is large or the records are incomplete, sorting the right path often needs more than the notice alone. JFT Group, an Allentown, Pennsylvania firm operating since 2012, offers tax preparation, bookkeeping and IRS problem resolution, including Offer in Compromise assistance, for individuals and businesses in all 50 states. Qualification and outcomes can't be guaranteed.
CP71 and CP71C vs. Identity-Verification Notices
Unlike CP71 and CP71C, CP5071 (along with CP5071C and CP5071F) is not a balance reminder. The IRS sends it when a Form 1040-series return was filed under your SSN or ITIN and it needs to verify your identity and the return. If you did not file that return, identity theft may be involved.
How to Respond Safely
- Follow the instructions on your specific notice.
- If online verification is offered, start at irs.gov/verifyreturn.
- Have the notice, the return in question, a prior-year return and documents such as W-2s or 1099s ready.
- Never give your Social Security number or financial details to an unsolicited caller or through a suspicious link.
Phone Numbers
The IRS's public CP5071 page doesn't publish a universal Taxpayer Protection Program number. Use the phone number printed on your authentic notice or letter, and don't borrow one from another notice or an outdated article.
Conclusion
CP71 and CP71C are prompts to review and address your balance. Don't ignore them, and don't assume a levy is underway.
Your next steps:
- Verify the account balance and notice details
- Confirm whether a payment arrangement is already active
- Choose the most realistic resolution path
If the balance is disputed, records are incomplete, or you can't afford to pay, get qualified tax help. Low Income Taxpayer Clinics may assist eligible taxpayers.
Frequently Asked Questions
I received a CP71C notice. What should I do?
Review the tax year and balance, verify payments and any existing arrangement, and follow the notice instructions. Seek help if the balance is wrong or unaffordable.
What should I do if the IRS wants me to verify my identity?
Use only the verification process shown on your notice or IRS.gov. Protect your personal information and ignore unsolicited contacts.
What does IRS notice CP71C mean?
It's a reminder of an unpaid balance, covering tax, penalties and interest. It includes payment information and warnings about passports, liens or private collection.
What does IRS notice CP5071 mean?
CP5071 is an identity and return-verification request, not a balance-due reminder. Follow its specific instructions.
What is the phone number for the Taxpayer Protection Program hotline?
Use the number printed on your authentic IRS notice or listed on the official IRS Taxpayer Protection Program page. Numbers change, so don't rely on third-party listings.
