IRS CP71 / CP71C Notice: Annual Balance Reminder
A CP71 or CP71C is the IRS's annual reminder that you still owe a tax balance — it isn't a new bill or a levy threat, but it shows the debt (with penalties and interest) is active and growing.
What a CP71 / CP71C actually means
The IRS is legally required to remind you of an unpaid balance once a year. Receiving one means the account isn't in an active resolution (or is in hardship status but still accruing).
It's also a strategic checkpoint: the IRS generally has 10 years from assessment to collect (the CSED). A CP71C in year 7 or 8 signals different negotiating leverage than one in year 2 — and hardship, payment-plan, or Offer in Compromise math changes with the clock.
What to do, step by step
- 1Verify the balance and the year it relates to; pull account transcripts to see the assessment date.
- 2If you can address it, act — installment agreement, Offer in Compromise, or hardship (CNC) status.
- 3If you're already in CNC status, no action is required; the letter is just the annual notice.
- 4Check the collection statute expiration: old debts may be closer to expiring than you think.
Common questions
Does a CP71C mean the IRS is about to levy?+
No — it's an annual statement, not a levy warning. But it confirms the debt is active, and if you've never resolved it, escalation letters can resume at any time.
Do IRS tax debts expire?+
Generally yes — 10 years from assessment (the Collection Statute Expiration Date), though payment plans, offers, and bankruptcies can pause the clock. Transcripts reveal the real dates.
Received a CP71 / CP71C? Get it handled.
Talk to a tax specialist about your notice — free, no pressure, no judgment.