The various forms of IRS Notice CP71 begin by saying, "Annual reminder of balance due taxes for tax year [year]" or "reminder of overdue taxes for [year]". The IRS uses Notices CP71 (A-D) to remind you of taxes owed. CP71C (below) is most commonly used but CP71, CP71A, CP71D, & CP71H (Health Care) are used as well. Your situation is not yet urgent but should be corrected immediately. Letter 3228 & Notice LT39 are very similar in effect as the various Notices CP71. Since the end of the pandemic the IRS has resumed notmal collection efforts and may send you Notice LT38, which is very similar to CP71C.
The IRS will also separately send you a Notice CP-89, detailing the payments you have made.
IRS Intent to Levy
You have likely already received Notices of Intent to Levy (CP504, CP90, Letter 1058) so the IRS could seize at any time. However, this CP71C reminder is not an active indication that enforced collection against you is imminent. We have time to bolster a good case for you. Waiting until the IRS seizes your property makes the case more difficult.
Take Control
Eventually, you'll have to decide what action to take to control this debt. Whatever action you take will likely require you to complete a Form 433-A to disclose your income & assets. Take our webinar to learn the tricks & traps of completing this form.
But, in some ways the passage of time may actually work in your favor. Once the statute of limitations has run its course, your options for escaping the tax burden expands. If you will go obtain your Account Transcripts it will only take one consultation so Mr. Hopkins can determine the limitations period & assessment issues to devise the most sure method of winning your case.
Sometimes amended returns must be filed. Other times, financial statements must be completed for the IRS. However, in many cases, doing nothing at all is advisable. It is also wise to avoid extending the statute of limitations for IRS Collections.
Please follow the Prep Steps for the answers about IRS Notice CP71C and see Mr. Hopkins in Colorado Springs or Pueblo before proceeding!
Various Notices CP71C:
