Key Points of IRS CP71A Notice
The IRS CP71A notice is an annual reminder that brings to your attention the total unpaid balance you owe as of the date of the notice. This includes a detailed account of any interest and penalties added to your unpaid taxes. If you face a possible denial or revocation of your US passport due to tax debt, this will also be explained in the notice. It will also outline a range of payment options and arrangements that you might consider, especially if paying the full amount immediately isn't feasible.
How to Respond to IRS CP71A Notice
Upon receiving the CP71A notice, start by confirming that the amount stated is in line with your records. If everything checks out and you're in a position to do so, you can choose to pay the balance in full. However, if a full payment isn't possible now, it's worth exploring the various payment plans the IRS has made available, like an installment agreement. If you find any discrepancies in the notice or need further clarification, the notice will include contact information for the IRS, which you can use to get the answers you need. Acting promptly in addressing the outstanding balance is essential as it helps avoid the accrual of additional interest and penalties.
Possible Consequences of Not Responding
Ignoring the CP71A notice can lead to increased penalties, interest, and potentially more aggressive collection actions by the IRS, such as tax liens or levies.
When to Seek Professional Help
We can help! If you disagree with the balance due, cannot pay the full amount, need advice on payment plans or negotiations, or need assistance understanding your tax situation. Our team of experts can offer invaluable advice and represent and resolve your situation with the IRS on your behalf.
Frequently Asked Questions (FAQs)
What if I can’t afford to pay the full amount due?
Does this notice mean I'm being audited?
How often will I receive a CP71A notice?
Receiving a CP71A notice is a reminder to address your unpaid tax balance. Reviewing the notice, assessing your payment options, and taking timely action to resolve your tax liabilities is important.