The CP71C is one of the quieter notices the IRS sends — not an escalation, not a threat, just an annual reminder that an unpaid balance still exists on your account and that it continues to grow.
If you’re receiving a CP71C, you’ve almost certainly received earlier notices about the same balance. The CP71C is the IRS’s way of making sure you don’t forget about a debt that hasn’t been resolved.
What the CP71C means
Once a year, the IRS sends CP71C notices to taxpayers who have outstanding balances that haven’t been paid or formally arranged. The notice shows the current balance including all accrued interest and penalties, and reminds you that collection action remains possible if the balance isn’t addressed.
The CP71C itself doesn’t trigger new enforcement — it’s informational. But receiving one means your account is still in the IRS’s collection inventory, and that interest continues compounding daily on whatever balance remains.
What to do
If you’re already in an active payment plan and making payments on time, the CP71C is simply confirmation that a balance remains — which is expected while you’re paying it down. No immediate action is needed beyond confirming your installment agreement is still active.
If you don’t have a payment arrangement in place, the CP71C is a prompt to establish one before the case escalates further. Payment plans, hardship status, and penalty abatement are all still available at this stage.
Frequently asked questions
Does a CP71C mean my payment plan was cancelled? Not necessarily. Check your IRS online account to confirm your installment agreement status. If it shows active, the CP71C is routine.
Can I request penalty abatement at this stage? Yes. First-Time Penalty Abatement and reasonable cause relief are still available regardless of how long the balance has been outstanding, as long as you meet the eligibility criteria.