What the IRS says: “An annual statutory reminder of your unpaid tax balance, penalties and interest.” Here’s what it actually means, your deadline, and exactly how to respond.
The IRS is required by law to remind you yearly of any unpaid balance — including debts in currently-not-collectible status or past cases you thought were closed. A CP71C by itself signals no new enforcement; but it's a good annual audit point: is the balance shrinking as expected, is the CSED (10-year collection clock) approaching, and is your resolution still the right one?
Notice family: Collection & Balance Due — The IRS says you owe money and is escalating toward liens and levies. Each notice in the chain is more serious than the last — and each one still has an off-ramp: pay, arrange payments, or dispute in writing before the deadline.
Check the figure against your own records and last year's CP71C
Note your CSED — old debts eventually expire; payments and certain events extend the clock
If your finances improved: proactively restructure before the IRS asks
If it should be zero: respond with payment proof
Only respond if the balance is wrong — then a letter with transcripts/payment proof. Otherwise file it and diary the collection expiration date.
An annual statutory reminder of your unpaid tax balance, penalties and interest. In practice: The IRS is required by law to remind you yearly of any unpaid balance — including debts in currently-not-collectible status or past cases you thought were closed. A CP71C by itself signals no new enforcement; but it's a good annual audit point: is the balance shrinking as expected, is the CSED (10-year collection clock) approaching, and is your resolution still the right one?
There is no fixed response deadline on this notice, but acting promptly keeps your options open. The respond-by date printed on your own notice always controls.
Only respond if the balance is wrong — then a letter with transcripts/payment proof. Otherwise file it and diary the collection expiration date.