IRS Notice Guide

CP71 Notice: The IRS Annual Reminder of a Balance Due

By Ray Neu, Publisher | Last reviewed: October 26, 2026 | Reading time: 8 min

Short answer

A CP71 is the IRS annual reminder of unpaid tax, penalty and interest. Section 7524 requires such a notice at least once a year for every delinquent account. IRM 21.3.1 assigns versions by account status, including CP71A for currently not collectible accounts. The sample notice says reminders continue until the collection statute expires.

This guide lays out, from the IRS notice pages, the Internal Revenue Manual, Taxpayer Advocate Service material and the statute, what each CP71 variant covers, what the reminder does and does not signal about collection, and the options those pages list.

Deadline to know: Each CP71 shows an “Amount due by” date; the sample notice says paying by then keeps “interest and applicable penalties from continuing to increase.” The outer limit is set by 26 U.S.C. § 6502(a)(1): collection by levy or court proceeding within 10 years after assessment, a period the IRS says can be suspended or extended.

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Why the IRS mails a CP71 every year

The duty is statutory. Section 7524 reads: “Not less often than annually, the Secretary shall send a written notice to each taxpayer who has a tax delinquent account of the amount of the tax delinquency as of the date of the notice.” The sample CP71 on irs.gov opens the same way: “We’re required to send you this annual reminder explaining the amount you still owe.”

IRM 21.3.1.6.33 describes the base CP71 as issued “once a year to remind taxpayer of a balance due, including penalty and interest,” on accounts “previously in a deferred Status (Status 23).” For a caller whose finances have not changed, the manual’s instruction is “No action is necessary.”

Because the law sets the timing, the reminder can reach accounts already being handled. The TAS page for CP71C says it is sent “even if you have already worked with the IRS to address your balance through a payment plan” or after a hardship determination.

CP71, CP71A, CP71C, CP71D and CP71H

The letter after the number 71 marks which kind of account the reminder goes to. The IRS has a consumer page for each of these five versions.

Version	Account it goes to (IRM 21.3.1)	What its IRS page stresses
CP71	Accounts previously in deferred status 23	Interest, possible refund offsets, passport certification
CP71A	Modules in status 53, currently not collectible	No action needed if finances have not changed
CP71C	Delinquent accounts in the queue, status 24 for at least one year	Possible lien filing and private collection assignment
CP71D	Status 26 modules with a balance of $25.00 or more, one notice per module	Contact the revenue officer if one is assigned
CP71H	Affordable Care Act shared responsibility payment (SRP) balances	No penalties, liens or levies; refund offset possible

The sources do not line up perfectly. IRM 21.3.1.6.33.2 says CP71C is issued “bi-annually,” mailed February through November by taxpayer identification number, though its title and the TAS page call it annual. An older IRS code list, Document 6209, adds conditions the current IRM leaves out: CP71A after “at least 65 cycles” in status 53 with certain closing codes, and CP71D for status 22 or 26 accounts. This page follows the current IRM where the two differ.

CP71A and currently not collectible accounts

The CP71A page is short: “Your account will remain in non-collectable status until your financial situation changes,” and “If your financial situation hasn’t changed, you don’t need to do anything at this time.” It asks the taxpayer to keep “filing your taxes timely to let us know if your financial situation changes.” IRM 21.3.1.6.33.1 gives IRS staff this script for a caller who cannot pay: “Explain CP 71A is an annual notice. No enforcement action will be taken now.”

Hardship status pauses collection without erasing the debt. The IRS page on delaying collection says the IRS “may resume collection if your ability to pay improves,” may file a Notice of Federal Tax Lien, and applies federal refunds to the debt. TAS adds that taxpayers in this status “continue to receive an annual bill from the IRS as required under the law.” The IRS passport page excludes accounts determined “currently not collectible” due to hardship from passport certification. The currently not collectible guide covers how the status is granted and reviewed.

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What the reminder says about collection

A CP71 is not itself a levy notice, but the variant pages describe different consequences of leaving the balance open:

CP71: interest continues, “additional penalties may apply,” and “Future tax refunds may be offset until your balance is paid.”
CP71C and CP71D: the IRS “may file a Notice of Federal Tax Lien,” subject to Collection Due Process rights, and “may assign your account to a private collection agency.” The IRS private collection page says Notice CP40 comes first, then a letter from the agency. See the federal tax lien guide.
CP71H: “The law prohibits us from using liens or levies to collect any individual SRP,” though refunds may be offset. Publication 594 says the SRP is also not subject to the failure to pay penalty.

The sample CP71 adds that the IRS “can file a Notice of Federal Tax Lien (NFTL)” and “may levy (subject to any applicable Collection Due Process rights).” On passports, the IRS sets the 2026 seriously delinquent threshold at more than $66,000; certification also requires a filed lien with administrative remedies lapsed or exhausted, or an issued levy.

The 10-year collection statute

Section 6502(a)(1) lets assessed tax be collected by levy or court proceeding if begun “within 10 years after the assessment of the tax.” The IRS calls the end point the Collection Statute Expiration Date (CSED) and notes that one account “can include multiple tax assessments, each with their own CSED.” It appears on an account transcript as a transaction code with a date beneath it.

The clock does not always run. The IRS time to collect page lists suspensions while an installment agreement request or offer in compromise is under review, during a Collection Due Process hearing, during bankruptcy plus 6 months, and while living outside the U.S. continuously for 6 months or more. Section 6502(a)(2) separately allows a longer period agreed in writing with an installment agreement. The back taxes guide walks through how these dates interact with older balances.

Options the CP71 pages list

Paying in full. The CP71 page says interest and applicable penalties “stop being added as soon as you pay your balance in full.” Payments “can take up to 21 days to post.”
A payment plan. Online for individuals owing $50,000 or less with all returns filed; standard long-term setup fees run from $29 to $178 per the IRS page updated March 3, 2026. Those with an approved plan are told to keep paying under it. See the installment agreement guide.
A collection delay. “IRS may temporarily delay collection if you’re facing financial hardship until your situation improves.”
An offer in compromise. The pages point to the IRS Pre-Qualifier Tool. See the offer in compromise guide.
A dispute. The pages say to call the number on the notice with “information indicating you’ve paid this debt or don’t owe the tax.” For penalties, TAS points to Form 843 or a signed statement, per Notice 746. See penalty abatement.

For a CP71D on an account where the IRS has recently been in contact and payment is arranged, IRM 21.3.1.6.33.3 tells staff to explain “that notice is required by law and to disregard.”

When an attorney matters

Each CP71 page says tax professionals outside the IRS “may be able to help you,” and that Low Income Taxpayer Clinics can represent low-income persons for free or a small fee. Publication 594 lists who can appear in collection: the taxpayer, an attorney, a certified public accountant, an enrolled agent, an immediate family member, or any person enrolled to practice before the IRS, with Form 2848 on file. Differences appear in a few places:

Privilege. Under § 7525, confidentiality for communications with CPAs and enrolled agents applies only in noncriminal tax matters before the IRS and noncriminal federal tax proceedings.
Appeals. Publication 1660 allows representation at Collection Due Process and Collection Appeals Program proceedings by an attorney, a CPA or an enrolled practitioner.
Statute questions. The IRS directs anyone who disputes a CSED computation to call, then to the Taxpayer Advocate Service on Form 911.

The attorney vs CPA vs enrolled agent comparison covers the roles in more depth, and the IRS notices hub places the CP71 alongside the other balance due notices.

Related guides

Frequently Asked Questions

Why did I get a CP71 when my account is in hardship status?

Section 7524 requires a written notice of a tax delinquency at least once a year. For currently not collectible accounts the IRS uses CP71A, and its page says no action is needed if finances have not changed.

Does a CP71 mean the IRS is about to levy?

The CP71 is a reminder, not a levy notice. The sample notice says the IRS may levy subject to any applicable Collection Due Process rights, and IRM 21.3.1.6.33.1 says no enforcement action will be taken now on a CP71A account.

How long will CP71 reminders keep coming?

The sample CP71 says reminders continue until the statute of limitations for collection expires. Under § 6502(a)(1) that is generally 10 years after assessment, subject to suspensions.

What is a CP71H?

It is the annual reminder for an unpaid shared responsibility payment from before 2019. The IRS cannot use liens or levies to collect it, but interest accrues and refunds may be offset.

I already paid or have a payment plan. What now?

The CP71 page says a balance paid in full within the last 21 days can be disregarded, and an approved installment agreement should be continued as agreed.

Sort out a recurring CP71

A free, confidential evaluation can help sort out which payment, hardship or dispute route the law makes available.

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About the Author

Ray Neu

Ray Neu is the publisher of IRSAttorneys.net. A former law enforcement officer with a background in criminal justice and digital publishing, he oversees editorial direction, partnership standards, and compliance review for the site. He is not an attorney and does not provide legal advice; all tax law content is sourced and reviewed against the standards documented on the Editorial Team & Standards page.

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Sources

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