What Is IRS Notice CP71C?

CP71C is a routine annual reminder the IRS sends to taxpayers who have an outstanding tax balance that hasn't been resolved. It's not a new escalation — it's simply the IRS periodically reminding you that a prior balance remains on your account and providing an updated total that includes accrued penalties and interest.

If you're already in an approved installment agreement and making payments, the CP71C may still arrive — the notice is generated based on your account balance, and even if you have an active payment arrangement, the system sometimes sends this annual reminder. In that case, you typically don't need to do anything as long as you're current on your installment agreement payments. It can be worth calling the number on the notice to confirm that your payment plan is active and in good standing.

If you don't have an active payment arrangement and the CP71C is the first you're hearing about this balance (which can happen if prior notices were sent to an old address), treat it like an early collection notice and act promptly. The IRS hasn't been sitting still — penalties and interest have been accruing since the original due date, and the balance shown on the CP71C reflects the full amount now owed including those additions. Your options are to pay in full, set up an installment agreement, request an Offer in Compromise, or contact the IRS to discuss your situation.

The CP71C also often arrives during periods when the IRS has paused collection action — such as during a collection statute tolling period or when an account has been placed in Currently Not Collectible status. If you believe your account is currently protected from collection, verify that status when you receive the notice, since circumstances can change and collection can resume.