What Is an IRS CP71 Notice?

Q: Is a CP71 a levy notice?

No. CP71 is an annual reminder of a balance due. While it is part of the collection cycle, levy authority is associated with later notices such as LT11/Letter 1058.

Q: Why do I keep getting CP71 notices each year?

The IRS sends periodic reminders while a balance remains open. Until the debt is resolved, annual notices can continue.

IRS Notices Explained
Written by Enrolled Agent
Reviewed by Enrolled Agent

The CP71 is an annual reminder from the IRS that you have a balance due. It summarizes what you owe (tax, penalties, interest) and urges you to resolve the debt. Here’s what it means, how it fits into the collection process, and the best next steps.

Quick Answer

An IRS CP71 is an annual reminder notice that you still owe a tax balance from one or more prior periods. It lists the amount due and how it has changed with penalties and interest. It is a reminder—not a new assessment—and a signal to resolve the balance before further collection action continues.

Note: You may see variants such as CP71A, CP71C, or CP71D. These are related annual reminders; the core message is the same—there is an outstanding balance that needs resolution.

Why You Received a CP71

You have an unpaid IRS balance that remains open on your account.
Previous notices were sent, but the liability wasn’t fully resolved.
The IRS is required to provide periodic reminders of outstanding debts.

The CP71 is informational, but it matters. It confirms the IRS has not closed your case and that penalties and interest continue until resolution.

What the CP71 Means

The CP71 summarizes your current amount due, including tax, penalties, and interest. It may list the tax periods involved and explain payment options. It does not, by itself, authorize a levy—but it indicates your account remains in the collection pipeline.

Review the details carefully. If the amount looks off, pulling transcripts and reconciling prior adjustments is the right first step.

Where CP71 Fits in the Collection Sequence

CP71 appears after earlier balance-due notices (for example CP14, CP501, CP503, CP504) and may recur annually while a balance remains. If an account continues unresolved, the IRS can move toward stronger actions such as LT11/Letter 1058 (Final Notice of Intent to Levy).

The CP71 keeps the debt on the radar. It’s a prompt to choose a resolution path before enforcement becomes more disruptive.

What to Do Next

Match your response to your situation:

Balance is correct and affordable: Pay in full to stop penalties and interest from growing.
Need time to pay: Request an Installment Agreement to spread payments and prevent escalation once approved.
Temporary hardship: Ask about Currently Not Collectible (CNC) status to pause active collections while finances recover.
Limited ability to pay overall: Explore an Offer in Compromise if you qualify based on ability to pay.
Think the amount is wrong: Pull IRS transcripts, reconcile prior adjustments (e.g., from CP21A or CP22A), and submit documentation to correct the balance.
Penalties are driving the total: Consider penalty relief (first-time abatement or reasonable cause) where appropriate.

Need a full roadmap? Start with our Complete Guide to Back Taxes in the U.S. for how IRS collections escalate and the best resolution options at each stage.

If You Ignore the CP71

The balance does not disappear. Penalties and interest continue, and the IRS may pursue liens or levies through subsequent notices if the debt remains unresolved. Each cycle reduces flexibility and increases total cost.

Early action keeps more doors open—payment plans, hardship holds, penalty relief—and protects cash flow and credit.

How Polaris Can Help

Polaris Tax & Accounting represents taxpayers nationwide through every phase of IRS collections. Our Enrolled Agents verify balances with transcripts, correct errors, and structure resolutions that match your reality—payment plans, hardship relief, settlement consideration, and penalty abatement.

We handle the IRS communication for you and coordinate state issues when needed, so your plan holds and you stay compliant going forward.

Your Next Step: Resolve the balance before it escalates. Schedule a consultation with an Enrolled Agent at Polaris.

Related Resources

FAQs

Is a CP71 a levy notice?

No. CP71 is an annual reminder of a balance due. While it’s part of the collection cycle, levy authority is associated with later notices (for example, LT11/Letter 1058).

Why do I keep getting CP71 notices each year?

The IRS sends periodic reminders while a balance remains. Until the debt is resolved, you can continue receiving annual notices.

What if the amount on my CP71 is wrong?

Pull IRS account transcripts and compare to prior adjustments (e.g., CP21A/CP22A). If there’s an error, contact the IRS or engage representation to correct it.