CP71C: Annual Reminder of Unpaid Tax and Passport Warning

Why you might get this

• You still have an unpaid balance on one of your tax accounts.
• The IRS is sending you a yearly reminder of that debt.
• Your debt may be large enough to be called 'seriously delinquent,' which can affect your passport.

The deadline

This notice asks for your immediate attention, but it does not set one strict legal deadline. Interest and penalties keep adding up until you pay in full, so acting sooner saves you money. Follow any date printed on your own notice, and note that payments can take up to 21 days to show on your account.

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

What to do

1. Sign in to your IRS online account to check the exact amount you owe.
2. Pay the full balance online if you can, so interest and penalties stop adding up.
3. If you can't pay it all, pay as much as you can now and set up a payment plan through the Online Payment Agreement Tool.
4. Mail your payment using the envelope and the bottom stub from your notice if you can't pay online.
5. Look into an Offer in Compromise (settling for less) using the Pre-Qualifier Tool if paying in full would cause hardship.
6. Ask the IRS to temporarily pause collection if you're facing financial hardship.
7. Call the toll-free number on your notice if you disagree, and have proof (like payment records) ready.

What happens if you ignore it

If you don't pay in full or set up a payment plan, the IRS may file a Notice of Federal Tax Lien, which tells your creditors it has a legal claim on your property. The IRS may also hand your account to a private collection agency. Interest keeps growing and more penalties may be added. Because this is a seriously delinquent debt, the State Department can deny or revoke your passport.

A federal tax lien and possible passport denial or revocation are serious steps. If you can't resolve this or you're facing hardship, you can get free help from the Taxpayer Advocate Service or a Low Income Taxpayer Clinic, or authorize a tax professional to represent you.

If you got a CP71C notice, the IRS is reminding you that you still owe unpaid taxes. It's an annual reminder, but it carries an important extra warning: if your debt is large enough to be called "seriously delinquent," the U.S. State Department can deny or revoke your passport under the FAST Act.

The good news is you have options. Start by signing in to your IRS online account to see exactly what you owe. If you can pay in full, that stops interest and penalties from growing. If you can't, pay as much as you can now and set up a payment plan through the Online Payment Agreement Tool. If paying would cause real hardship, you may qualify for an Offer in Compromise (settling for less than the full amount) or a temporary pause on collection.

If you already paid within the last 21 days, your payment may just need time to post. And if you disagree, call the number on your notice with your records ready.

Solace can keep an eye on your IRS account and let you know when your balance or status changes, so nothing catches you by surprise.