What this letter means
A CP71 reminds you that the IRS says you still owe on a tax account. It shows the balance, with interest and penalties added. These reminders often come once a year.
Getting one doesn’t mean something new went wrong. Many people get them while on a payment plan, or while the IRS has paused collection.
How urgent is it?
It depends on your version and your situation.
If you’re on a payment plan in good standing, or the IRS has marked your account as unable to pay, you usually don’t need to act. Just keep filing your returns on time.
If you have no plan in place, take it more seriously. Interest keeps growing. The IRS may file a lien. A lien is a public claim on your property. A large debt can also get your passport blocked. And any future tax refund can be kept to pay the balance.
What we do
We check the amount. Don’t assume the amount is right. A yearly reminder is a good time to look at penalties that could come off.
We check the clock. The IRS usually has 10 years to collect. Some old balances are close to that limit, and that matters for your best next step.
We look for a better fix. If you’ve been paying for years, settling for less or a smaller plan may now fit. If your money is tight, a pause may help. We’ll tell you if nothing needs to change.