Reminder of Your Unpaid Balance (Account in Non-Collectable Status)

Why you might get this

• You have an unpaid tax balance from a past year.
• The IRS placed your account in "currently non-collectable" status, which means they've temporarily stopped trying to collect because your finances are too tight.
• This is a routine reminder that the balance is still there, even though collection is paused.

The deadline

This notice is a reminder, not a demand for immediate payment. There is no action deadline printed for you if your financial situation hasn't changed. If you can start paying, do it as soon as you can to reduce the interest and penalties that keep building on your balance. Check your notice for any dates it lists.

This notice doesn't carry a fixed response deadline, but it still deserves attention — see what to do below.

What to do

1. If your money situation hasn't changed, you don't have to do anything right now.
2. Keep filing your tax returns on time each year so the IRS knows when your situation changes.
3. If you can afford to pay, look into your payment options or set up a payment plan by calling the phone number on your notice.
4. Consider whether an offer in compromise (settling for less than the full amount) fits your situation.
5. If you moved, send the IRS Form 8822 to update your mailing address.

What happens if you ignore it

Nothing sudden happens while your account stays in non-collectable status, but interest and late-payment penalties keep adding to what you owe. The IRS may also keep any future tax refunds and apply them to this balance. When your finances improve, the IRS can restart collection.

You may qualify for free help from a Low Income Taxpayer Clinic (LITC) or the Taxpayer Advocate Service (TAS). A tax professional independent from the IRS can also help you weigh a payment plan or an offer in compromise.

If you got a CP71A notice, the IRS is simply reminding you that you still have an unpaid tax balance. The good news: your account is in what the IRS calls "currently non-collectable" status. That means the IRS has looked at your finances, decided you can't pay right now, and paused active collection.

You don't owe an immediate payment because of this letter. If your money situation hasn't changed, you don't need to do anything except keep filing your tax returns on time. Filing on time is how the IRS knows when things get better for you.

Two things to keep in mind. First, interest and late-payment penalties still add up on your balance, even while collection is paused. Second, the IRS may keep any future tax refunds and apply them to what you owe. So paying something when you can helps shrink the total.

If you're ready to deal with the balance, you can call the number on your notice about a payment plan, or ask about an offer in compromise. Free help is available from a Low Income Taxpayer Clinic or the Taxpayer Advocate Service.

Solace can keep an eye on your IRS account so you'll know the moment your balance or status changes.