IRS CP71 Notice: Annual Tax Debt Reminder
Receiving an IRS CP71 notice means you have outstanding tax debt that requires attention. While less urgent than collection notices, it's important to address this annual reminder to prevent future collection actions.
What is a CP71 Notice?
The CP71 is an annual reminder about unpaid tax balances, providing updated information about your debt including accumulated penalties and interest.
Key Details Included:
- Current balance with penalties and interest
- Tax periods with outstanding balances
- Payment options and instructions
- Taxpayer rights information
- IRS contact information
Why You Received This Notice
- Unpaid balance remains on your tax account
- Annual IRS account maintenance requirement
- No recent payment activity on your debt
- Reminder of your tax obligations
Your Response Options
Option 1: Full Payment
If you can pay the full balance:
- Stops all penalty and interest charges
- Completely resolves your tax debt
- Prevents future collection actions
Option 2: Installment Agreement
If you need time to pay:
- Monthly payment plan options available
- Keeps IRS collection actions on hold
- Various plans for different balance amounts
Additional Resolution Options
- Currently Not Collectible Status: If experiencing financial hardship
- Offer in Compromise: Potential to settle for less than full amount
- Penalty Abatement: Request removal of penalties if eligible
Consequences of Ignoring This Notice
- Continued penalty and interest accumulation
- Potential for more aggressive collection notices
- Possible bank levies or wage garnishment
- Tax liens affecting your credit
How We Can Help
Our tax resolution services include:
- Complete account analysis and strategy
- Installment agreement negotiation
- Offer in compromise preparation
- Penalty abatement requests
- Full IRS representation
Don't Let Your Tax Debt Continue Growing
Every day you wait costs you more in penalties and interest. Take action now to resolve your tax debt.
Call 972-519-0041 today for a free consultation.