IRS CP71A Notice: Understanding Your Annual Installment Agreement Reminder
Receiving an IRS CP71A notice means you have an existing installment agreement with the IRS, and this serves as your annual reminder about the terms and status of your payment arrangement. Understanding this notice is crucial for maintaining your agreement in good standing and avoiding default that could trigger immediate collection actions.
The IRS CP71A notice is an annual installment agreement reminder sent to taxpayers who have an active payment plan with the Internal Revenue Service. This notice provides updated information about your installment agreement, current balance, and payment requirements to help ensure you stay in compliance with your arrangement.
Key Features of the CP71A Notice:
- Annual status update on your installment agreement
- Current balance information after payments made
- Remaining payment schedule and amounts
- Agreement terms reminder and compliance requirements
- Contact information for questions about your agreement
- Important dates and deadlines for your arrangement
You received a CP71A notice because:
Active Installment Agreement
- You have an approved payment plan with the IRS
- Annual reminder requirement mandated by IRS procedures
- Account maintenance to keep you informed of status
Agreement Monitoring
- Ensure continued compliance with payment terms
- Provide updated balance information after payments applied
- Notify of any changes in agreement status or terms
Taxpayer Communication
- Maintain transparency about your account status
- Prevent misunderstandings about payment obligations
- Provide resources for managing your agreement
Agreement Information Section
- Agreement type (guaranteed, streamlined, or non-streamlined)
- Effective date when agreement became active
- Payment amount required each month
- Payment due date (typically 28th of each month)
- Payment method specified in your agreement
Current Balance Information
- Original balance when agreement was established
- Payments made during the agreement period
- Current principal balance remaining
- Accrued interest and penalties since agreement start
- Total current balance including all charges
Payment Status
- Payments received and dates
- Any missed or late payments noted
- Current compliance status with agreement terms
- Next payment due date and amount
Agreement Terms Reminder
- Monthly payment amount required
- Payment method requirements (automatic debit, check, etc.)
- Address for mailing payments if applicable
- Consequences of default or non-compliance
Guaranteed Installment Agreement
Eligibility: Balance of $10,000 or less
• Automatic approval if criteria met
• 36-month maximum payment term
• No financial disclosure required
• Reduced setup fee compared to other agreements
Streamlined Installment Agreement
Eligibility: Balance between $10,001 and $50,000
• No financial disclosure required for approval
• Up to 72 months to pay (84 months with direct debit)
• Standard setup fee applies
• Simplified application process
Non-Streamlined Installment Agreement
Eligibility: Balance over $50,000 or special circumstances
• Financial disclosure required (Form 433-F or 433-A)
• Customized payment terms based on financial analysis
• Higher setup fee typically applies
• More complex approval process
Partial Payment Installment Agreement (PPIA)
Eligibility: Cannot pay full amount before collection statute expires
• Pay less than full balance over time
• Detailed financial disclosure required
• Periodic review of financial situation
• Potential for remaining balance forgiveness
Payment Requirements
- Make all payments on time by the monthly due date
- Pay the full amount specified in your agreement
- Use approved payment method as agreed upon
- Update payment information if banking details change
Compliance Obligations
- File all required returns by their due dates
- Pay current year taxes in full when filing
- Respond to IRS correspondence promptly
- Notify the IRS of significant financial changes
Communication Requirements
- Keep contact information current with the IRS
- Respond to annual reminders and status requests
- Report financial hardship if payment becomes impossible
- Request modifications before missing payments
Default Triggers
- Missing a scheduled payment or making insufficient payment
- Failure to file current year tax returns
- Accumulating new tax debt while on the agreement
- Providing false information on your application
Immediate Consequences
- Agreement termination notice (CP523)
- Immediate collection actions may resume
- Loss of protection from levies and liens
- Full balance becomes due immediately
Collection Actions After Default
- Bank levies and asset seizure
- Wage garnishments
- Federal tax liens filing
- Asset seizure and property levy
- Additional penalties and interest
Request Agreement Modification
When to use: Financial circumstances have changed
• Submit new financial information
• Request lower payment amount
• Extend payment term
• Change payment method
Request Temporary Delay
When to use: Short-term financial hardship
• Suspension of payments for up to 60 days
• No default declaration during approved delay
• Must resume payments after delay period
• Interest continues to accrue
Convert to Currently Not Collectible
When to use: Cannot make any payments due to hardship
• Suspend all collection activity
• Detailed financial disclosure required
• Periodic review of financial status
• Agreement officially terminated
Offer in Compromise Application
When to use: Cannot pay full amount and meet OIC criteria
• Settle for less than full balance
• Complex application process
• Significant documentation required
• May terminate existing agreement
How Karme Tax Services Can Help You Manage Your CP71A Notice and Installment Agreement
Having an installment agreement is a positive step toward resolving your tax debt, but maintaining compliance and managing your ongoing obligations can be challenging. Here's how Karme's expert tax services can help you stay on track and optimize your payment arrangement:
Agreement Optimization Review
Our tax professionals will review your current installment agreement terms and analyze whether they're still the best option for your financial situation. We may be able to negotiate better terms, lower payments, or alternative arrangements that could save you money and provide more flexibility.
Compliance Monitoring and Support
We'll help you stay in perfect compliance with your installment agreement by monitoring payment deadlines, ensuring current year tax obligations are met, and providing ongoing support to prevent any defaults or violations that could jeopardize your arrangement.
Financial Hardship Assessment
If you're struggling to make your agreed-upon payments, we'll evaluate your financial situation and help you explore options for modifying your agreement, requesting temporary payment suspensions, or converting to alternative resolution programs that better fit your current circumstances.
Agreement Modification Services
When your financial situation changes, we'll help you request appropriate modifications to your installment agreement. Whether you need lower payments, extended terms, or different payment methods, we'll present your case to the IRS in the most favorable light possible.
Default Prevention and Recovery
If you've missed payments or are at risk of default, we'll work immediately to prevent termination of your agreement. We can help you catch up on missed payments, negotiate reinstatement terms, or transition to alternative resolution options before collection actions resume.
Penalty and Interest Minimization
We'll review your account for opportunities to reduce or eliminate penalties through various abatement programs, and help you understand how to minimize interest accumulation while maintaining your payment arrangement.
Professional IRS Communication
Let our experienced representatives handle all communications with the IRS regarding your installment agreement. We'll ensure your rights are protected, your requests are properly presented, and any issues are resolved quickly and efficiently.
Don't Risk Losing Your Payment Arrangement
Your installment agreement provides crucial protection from IRS collection actions, but losing it due to default or non-compliance can have immediate and severe consequences. The IRS can resume collection activities without additional notice, potentially seizing your bank accounts, garnishing wages, or levying property within days of default.
Why Karme Tax Services is Essential for Installment Agreement Success
Proactive Management: We don't wait for problems to develop - we help you proactively manage your agreement to prevent issues before they occur.
Optimization Expertise: Our team regularly identifies opportunities to improve existing agreements, often reducing payments or providing better terms for our clients.
Default Recovery Specialists: If you've already defaulted or are at risk, we have the expertise to negotiate reinstatement or transition to alternative arrangements quickly.
Comprehensive Tax Planning: We integrate your installment agreement management with overall tax planning to ensure you stay current on future obligations while resolving past debt.
Protect Your Installment Agreement - Contact Karme Today
FREE Agreement Review: Contact Karme Tax Services for your complimentary review of your CP71A notice and installment agreement. We'll identify opportunities for improvement and ensure you're on the best possible path to resolution.
Urgent Default Assistance: If you're behind on payments or facing default, contact us immediately. Time is critical in preventing termination and resumption of collection activities.
Proactive Planning Support: Even if your agreement is current, we can help you optimize your arrangement and plan for full resolution of your tax debt in the most efficient way possible.
Secure Your Financial Future with Professional Agreement Management
Don't leave your installment agreement to chance. The difference between successful completion and costly default often comes down to proper management and proactive planning. Let Karme Tax Services provide the expertise and support you need to successfully complete your payment arrangement and achieve true tax debt freedom.
Call Karme Tax Services now or visit our website to schedule your free consultation. Protect your payment arrangement and secure your path to tax debt resolution.
Call KARME today at 972-519-0041 or schedule your consultation online.
This information is provided for educational purposes only and does not constitute legal or tax advice. Installment agreement management involves complex IRS procedures and requirements that vary based on individual circumstances. Always consult with qualified tax professionals for guidance specific to your situation.