IRS CP71C
Annual Balance Due Reminder — Tax Debt Still Owed
The IRS is reminding you of an old tax debt. Statute of limitations and resolution options still apply.
Deadline
No immediate deadline — but interest and penalties continue to accrue
CP71C is an annual reminder, not a levy notice. However, the IRS retains full collection rights and the 10-year collection statute is counting down. Review your options now.
Important — act before this escalates.
What IRS CP71C Means
CP71C is an annual reminder the IRS sends to taxpayers who have an outstanding balance that has not been fully resolved. It is not a new levy threat — it is a periodic reminder that the debt exists and interest and penalties continue to accrue.
Many people receive CP71C on debts that are years old. At this stage, the collection statute of limitations (10 years from the date of assessment under IRC §6502) may be relevant. If the statute is close to expiring, the debt may become uncollectible.
CP71C is also an opportunity. If you have an old balance, this is a good time to evaluate Currently Not Collectible status, Offer in Compromise, or whether the collection statute might expire before the IRS can collect.
What the IRS Can Do If You Don't Respond
- Continue accruing interest and penalties on the outstanding balance
- Levy assets at any time — CP71C does not restart the levy notice requirement
- File or refile a federal tax lien
- Extend the collection statute through certain actions
What You Should Do Right Now
- 1
Review the assessment date — calculate when the 10-year collection statute expires
- 2
Evaluate Currently Not Collectible status if you have no ability to pay
- 3
Consider an Offer in Compromise if you could settle the debt for less than owed
- 4
If the statute is near expiration, do not take any action that could extend it (such as entering an installment agreement)
- 5
Consult a tax professional to evaluate the statute status on old debts
Resolution Options Available to You
Frequently Asked Questions About IRS CP71C
Can old IRS debts expire?
Yes. The IRS generally has 10 years from the date of assessment to collect a tax debt (IRC §6502). After that, the debt is legally uncollectible. But certain actions — installment agreements, OIC applications, bankruptcy — can extend the statute.
Should I enter an installment agreement on an old CP71C debt?
Not necessarily. If the collection statute is close to expiring, entering a payment agreement restarts or extends the clock. A tax professional can analyze the statute date and advise whether resolution or waiting is better.
Professional References
IRC: IRC §6502 — Collection After Assessment — 10-Year Limitation
IRM: IRM 5.1.19 — Collection Statute of Limitations
Got IRS CP71C? Let's Resolve It.
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