Glossary

CP71 Notice

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The CP71 notice is an annual reminder sent by the IRS to taxpayers with an unpaid balance on their tax account. This notice provides a summary of the taxes, penalties, and interest that remain unpaid and encourages the taxpayer to take action to resolve the debt.

Key points in CP71:

The notice provides an updated balance, including any accrued interest and penalties since the last statement.
It outlines payment options, including the ability to set up an Installment Agreement or pay the balance in full.
Taxpayers who do not resolve the balance may face further IRS collection actions, such as liens or levies.

Receiving CP71 is a reminder that the taxpayer still owes a balance and should take steps to address the debt before additional penalties accrue.

Recommendation

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