IRS CP71 Notice: Reminder of an Unpaid Balance
Last reviewed by Calculus Tax in-house Settlement Officer
A CP71 is an IRS reminder that you still have an unpaid balance on one of your tax accounts. It also explains that the State Department can deny or revoke a passport for seriously delinquent tax debt. Pay what you can now and set up a payment plan for the rest, or call the number on the notice if you disagree.
Quick answer
A CP71 is an IRS reminder that you still owe a balance on a tax account. Pay in full to stop interest and penalties, or pay what you can and set up a payment plan. If you paid within the last 21 days or have an approved plan, keep following it. Ignoring a CP71 can lead to refund offsets and passport problems.
| What it is | A reminder of an unpaid balance that needs immediate attention |
|---|---|
| Interest and penalty | Interest accrues and a late-payment penalty applies until paid in full |
| Payment posting | Up to 21 days |
| If ignored | Refund offsets and possible passport denial or revocation |
| Passport law | FAST Act, for seriously delinquent tax debt |
| If you disagree | Call the toll-free number on the notice |
What the CP71 Means
The IRS sends a CP71 because you still have an unpaid balance on one of your tax accounts and it requires your immediate attention. Interest keeps accruing on the unpaid balance, and a late-payment penalty applies, until you pay in full.
What to Do Now
Pay the balance online, or mail your payment in the envelope provided with the bottom part of the notice. If you cannot pay it all, pay as much as you can and set up a payment plan for the rest; individuals can often apply online through the online payment agreement tool. See IRS installment agreements.
Already Paid or on a Payment Plan?
The IRS says payments can take up to 21 days to post. If you paid in full within the last 21 days, you can disregard the CP71. If you have an approved installment agreement, keep making payments under it. If you applied for one but are not yet approved, pay as much as you can now to limit interest and penalties.
Why the Notice Mentions Your Passport
The FAST Act generally prohibits the State Department from issuing or renewing a passport for a taxpayer certified as having seriously delinquent tax debt, and allows it to revoke one. A payment plan or other resolution can help you avoid certification. Learn more in IRS passport revocation.
What Happens If You Ignore It
Interest continues to accrue and additional penalties may apply. Future tax refunds may be offset until the balance is paid, as explained in will the IRS take my refund, and your passport may be denied or revoked if you are certified as seriously delinquent.
If You Cannot Pay or Disagree
If paying would cause financial hardship, the IRS may temporarily delay collection until your situation improves. An offer in compromise may be an option if you cannot pay the full amount. If you disagree with the notice, call the toll-free number on it and have your paperwork ready, such as proof of payment.
Avoiding a Balance Next Year
If you did not pay enough tax during the year, the IRS suggests adjusting your withholding or making estimated tax payments to avoid penalties and refund offsets. Publication 505, Tax Withholding and Estimated Tax, explains how.
Help With a CP71
Low Income Taxpayer Clinics can represent eligible taxpayers for free or a small fee. Calculus Tax reviews your IRS account with Brevitax, and our in-house Settlement Officer recommends a payment plan or other resolution. Contact us.
Frequently Asked Questions
Am I charged interest on what I owe?
Yes. Interest accrues on your unpaid balance until you pay it in full.
Is there a penalty if I cannot pay in full?
Yes, a late-payment penalty applies until the balance is paid.
What if I cannot pay the full amount?
Pay what you can and set up a payment plan for the rest. If paying would cause hardship, the IRS may temporarily delay collection.
I already paid. Why did I get a CP71?
Payments can take up to 21 days to post. If you paid in full within the last 21 days, the IRS says to disregard the notice.
Why does the CP71 mention my passport?
Under the FAST Act, the State Department can deny, decline to renew, or revoke a passport for taxpayers certified as having seriously delinquent tax debt.
What if I disagree with the CP71?
Call the toll-free number on the notice and have your paperwork ready, such as proof of payment or that you do not owe the tax.
What can change the answer
Notice type, issue date, filing history, account status, deadlines, and current agency procedures can change the available next step. Bring the complete notice and account records to a qualified review.
Tax rules and collection procedures can change and depend on the account. Federal claims should be checked against current IRS guidance; California claims should be checked against the California Franchise Tax Board. See our editorial methodology for sourcing and update standards.
Results depend on your facts and on IRS or state decisions. Calculus Tax, Inc. is not affiliated with the IRS or any government agency.
When professional help may make sense
Calculus Tax, Inc. can review notices, organize financial information, explain available paths, and communicate with the IRS or California agencies when representation is appropriate. The right next step depends on your facts, deadlines, filing history, and ability to pay.
We are based in Burbank and serve clients in Los Angeles and throughout Los Angeles County. See our local service-area pages for location-specific information.
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