CP71C- You owe interests and penalties

Making sense of your CP71C notice

Did you receive a notice from the IRS that has “The IRS calculation of the amount you owe, with a request to pay” boldly written on the front page? If so, then congratulations; you just received a CP71c notice (or notice to remind you of the taxes, penalties, and interests that you owe to the IRS). Read on if you are wondering what to do about it.

The IRS notice CP71c usually comes to tell you about a tax debt that you owe. Getting this notice does not automatically mean you owe the IRS and you must pay them immediately. However, before we get ahead of ourselves, let us explain what this notice is to you.


What is a CP71C?

The CP71C comes to remind a taxpayer of an unpaid tax debt, penalty, or interest. It may be one that you have completely forgotten about. This is because the IRS may have given you few years of grace to pay up and you didn’t. They didn’t forget about the debt. And they’re back to collect it.

The CP71C can also come with an explanation as to why you’re not eligible for the US passport or why your passport is revoked.


Things you should know about the IRS CP71C notice.

The IRS CP71C is not a scary notice because of the following facts about it.

  1. This notice is not a wake-up call as it doesn’t really give the IRS much power against you. The IRS can not come after you if you fail to respond to this notice.
  2. The CP71C does not give the IRS the liberty to clean out your bank account, seize or sell your house, levy your wages, liquidate your retirement account, or take your car or other important property.

If the IRS wants to take any such action, they have to send you another notice called the Final Notice of Intent to Levy or cp90.


What should you do when you receive the IRS CP71C?

When you receive the IRS CP71C, the first thing you should do is read the notice to understand it. It will explain how much you owe alongside what interests and penalties have been leveled against you.

The next step would be to make payments arrangements with the IRS if you can not pay the full amount you owe at that moment. However, since the CP71C does not really have any immediate consequences, some people choose not to make payments immediately after they receive the notice. However, you should know that this can accrue interest on your unpaid balance as time goes on.

The best decision for you would depend on your unique tax situation and how much you owe. Using our professional knowledge and wealth of experience, we can help you analyze your situation and come up with the best plan for you. Call us now at 888-585-8629 today.

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About Souri, Gazda, & Co.

We are a tax relief firm dedicated to giving you the best results regarding resolving your tax debts. Our team of qualified professionals is available round the clock to provide you with the assistance you need. Contact us now at 888-585-8629 or 617-430-4674 or send us an email at help@newstarttaxconsulting.com.

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Internet subscribers, users, and online readers are advised not to act upon this information without seeking the service of a professional accountant. Any U.S. federal tax advice contained in this website is not intended to be used for the purpose of avoiding penalties, of any kind, under U.S. federal tax laws.