IRS Notices
IRS CP71C Notice: What It Means and What to Do (2026)
The short answer: a CP71C notice is the IRS's yearly reminder that you still owe a tax balance — printed with the current total, including added penalties and interest. It is not a new bill or a levy. But it often carries a warning that a large debt can affect your passport, so it shouldn't be ignored.
⏱ Your deadline: a CP71C has no hard "pay by" date the way an early bill does — it's an annual statement. But the balance grows every month it sits, and any passport warning on it stays active until you set up an arrangement. The practical deadline is now, while you still have every option open.
Why you got a CP71C
The CP71C notice means the IRS still has a balance on your account from an earlier tax year, and the law requires it to remind you at least once a year. You most often see a CP71C when your account is already in a holding pattern — for example, you've been placed in Currently Not Collectible status, or you have a balance the IRS isn't actively chasing at the moment. The official explainer is on the IRS site at Understanding your CP71C notice.
Here's the part people miss: a reminder is not the same as a restart. Getting a CP71C usually does not mean collection has kicked back into gear. It means the debt is still on the books, and the meter is still running. The "C" version of this notice is the one that typically includes language about seriously delinquent tax debt and your passport — more on that below.
What the passport warning really means
Many CP71C notices include a paragraph warning that the IRS can certify a "seriously delinquent tax debt" to the U.S. State Department. Once certified, the State Department can deny a new passport application or revoke one you already hold.
A debt is generally "seriously delinquent" when it climbs above an inflation-adjusted threshold — around $65,000 in recent years — and the IRS has already filed a lien or issued a levy notice. The good news: getting into an active arrangement, such as an installment agreement or an accepted Offer in Compromise, generally removes that certification. You don't have to pay the whole thing to protect your passport — you have to get into a plan. You can read the IRS rules at Revocation or denial of passport in cases of certain unpaid taxes.
What happens if you ignore it
A CP71C by itself doesn't trigger a levy — but ignoring it has real costs that build quietly:
- The balance keeps growing. Interest compounds daily, and the failure-to-pay penalty runs at 0.5% of the unpaid tax each month it stays unpaid. A "frozen" debt is not a static debt.
- The passport flag stays active. If your debt is certified as seriously delinquent, that certification doesn't lift on its own — it lifts when you set up an arrangement.
- Currently Not Collectible status can end. If your income recovers, the IRS can move your account out of CNC and back into active collection — and the next letters carry levy power.
- Your collection clock may be ticking down — or paused. The IRS generally has 10 years to collect (the Collection Statute Expiration Date, or CSED), but some actions extend it. Knowing where your CSED actually stands changes your whole strategy.
In 2026 this matters more than usual. IRS staffing is stretched thin, but the reminder notices, liens, and passport certifications are issued by automated systems. The machine keeps running whether or not a person ever looks at your file.
First: confirm the CP71C balance is right
Before you do anything else, take ten minutes to check the numbers:
- Log into your IRS online account and compare the balance there with the notice. Confirm the tax years and amounts match.
- Check your CSED. If part of this debt is old, some of it may be close to expiring. That changes whether paying or waiting makes sense.
- Screen for scams. A real CP71C arrives by postal mail, never by email or text. Real payments go only to the United States Treasury or through IRS.gov — never gift cards, wire transfers, or payment apps. If you're unsure the letter is genuine, here's how to tell if an IRS letter is real.
If you can't pay in full: your real options
The CP71C makes it sound like full payment is the only path. It isn't. Which option fits depends on your finances:
- Installment agreement — a monthly payment plan (details on the IRS payment plans page). For balances under about $50,000, "streamlined" agreements can usually be set up without detailed financial disclosure, spread over up to 72 months. Getting into a plan also generally clears the passport flag.
- Currently Not Collectible status — if you're already in CNC, the CP71C is just confirming it. If you're not but paying anything would cause genuine hardship, you may qualify to pause collection. The CP71 annual reminder is the version many CNC taxpayers see.
- Offer in Compromise — settling for less than the full balance. It's real, but only when your assets and income genuinely can't cover the debt. The IRS runs the math, not the marketing. An experienced tax professional can tell you whether you're actually a candidate before you spend anything chasing it.
- Penalty relief — first-time penalty abatement can remove the failure-to-pay penalty if your recent history is clean. Reasonable-cause relief may apply for illness, disaster, or other events beyond your control.
How to respond to a CP71C, step by step
- Verify the balance against your IRS online account and confirm the tax years (see above).
- Check the passport language. If the notice mentions seriously delinquent tax debt, treat getting into an arrangement as the priority — that's what lifts the certification.
- If you can pay: pay at IRS.gov/payments, which stops interest and penalties from growing further.
- If you can't pay in full: set up an installment agreement, request CNC status, or explore an Offer in Compromise — pick the option above that matches your situation.
- If you owe more than $10,000, have unfiled years, or a passport warning: get a professional review first. The order you fix things in — returns, then penalties, then the balance — changes what you end up paying.
Holding a CP71C right now?
Send us a photo of it. An experienced tax professional will decode exactly where you stand — including whether your passport is at risk — and lay out your options. Free, confidential, no pressure.
CP71C questions, answered
Is a CP71C notice serious?
A CP71C is a yearly reminder, not a new enforcement action — nothing is being levied or garnished because of this notice. But it is serious in one way: the balance it shows is still legally owed, interest and penalties are still adding up, and the passport warning it often carries is real. Ignoring it lets the debt grow.
Why did I get a CP71C if the IRS already stopped collecting?
If your account is in Currently Not Collectible status, the IRS pauses active collection but is still legally required to send you a yearly reminder of the balance — that reminder is the CP71C. It does not mean collection has restarted. It simply confirms the debt is still on the books and still growing with interest.
Can the CP71C affect my passport?
It can. CP71C notices often include a warning that a "seriously delinquent tax debt" — generally a balance over an inflation-adjusted threshold around $65,000 — can be certified to the State Department, which can deny or revoke your passport. Setting up a payment plan or other arrangement generally removes that certification.
Do I have to pay the full amount on my CP71C?
Not necessarily all at once. You may qualify for a monthly installment agreement, Currently Not Collectible status if paying would cause hardship, or an Offer in Compromise for less than the full balance when your finances genuinely support it. Penalty relief may also reduce what you owe.
Does the tax debt on a CP71C ever go away on its own?
The IRS generally has 10 years from the date a tax is assessed to collect it — the Collection Statute Expiration Date, or CSED. After that, the debt usually expires. But certain actions can pause or extend that clock, so the date on your CP71C is rarely as simple as it looks. Confirm your CSED before assuming it.
This guide is general information, not tax or legal advice for your specific situation. Eligibility for IRS programs depends on individual facts and circumstances; no outcome is guaranteed.