CP71C Notice: Annual Reminder of Balance Due on Tax Debt

The CP71C Notice is an annual reminder sent by the IRS to notify taxpayers of their outstanding balance on tax debt. The notice includes information about the remaining balance due, along with any penalties and interest that have accrued since the original tax was assessed.

Key elements of the CP71C Notice:

• Summary of Debt: The notice provides a detailed breakdown of the total amount owed, including the original tax balance, penalties for late payment, and interest that has accumulated over time.
• Payment Options: The IRS offers several options for paying the balance, including paying in full, setting up an installment agreement, or using the IRS’s online payment portal. The CP71C encourages taxpayers to act promptly to avoid additional penalties and interest.
• Consequences of Non-Payment: If the taxpayer does not pay the balance, the IRS may escalate collection actions, such as garnishing wages or placing a lien on property. The notice provides a deadline for payment to avoid further penalties.
• Dispute Rights: If the taxpayer believes the balance due is incorrect, they can dispute the notice by providing supporting documentation. The CP71C includes instructions for submitting a dispute or requesting a review.

The CP71C Notice is an important reminder for taxpayers to resolve their outstanding tax debt and avoid further penalties or enforcement actions.