Why am I getting a reminder instead of a final notice?

IRS procedures say CP71D is issued once a year on accounts in a specific collection status with a balance of $25 or more. It is a reminder that the balance is still open, not a new assessment.

I paid recently. Should I ignore it?

The IRS says payments can take up to 21 days to post. If you paid in full within the last 21 days, you can disregard the CP71D. Check your online account to confirm.

I already have an installment agreement. What now?

The IRS says to keep making payments under the agreement. If you applied but have not been approved, pay as much as you can to limit interest and penalties.

Can my passport really be affected?

Yes. IRC 7345 allows the IRS to certify seriously delinquent tax debt to the State Department, which generally cannot issue or renew a passport for that person. Debts being paid on time under an installment agreement or accepted offer are excluded.

I have a revenue officer. Do I call the number on the notice?

The IRS says that if you are already working with a revenue officer, contact them to discuss your payment options.

Will I get a separate CP71D for each year I owe?

Yes. IRS procedures say a separate notice is issued for each tax period in the qualifying collection status, so several envelopes in the same week can all be about different years.

IRS CP71D: Annual Reminder That You Still Owe

CP71D is the IRS annual reminder that a balance is still unpaid, with a passport warning. What it means, how it differs from other notices, and what to do.

What CP71D means

CP71D is a yearly reminder. The IRS is telling you that you still have an unpaid balance on one of your tax accounts and that it requires your immediate attention. The IRM title is Taxes Still Owed, Annual Reminder.

It also carries a warning about passports. The notice explains that the State Department can deny or revoke a passport for a person with seriously delinquent tax debt.

CP71D does not create a new debt. It reminds you of an old one that has not gone away.

Why you got it

IRM 21.3.1.6.33.3 says the IRS issues CP71D once a year on accounts in a particular collection status with a balance of $25 or more, and sends a separate notice for each tax period in that status. The status matters for one practical reason: the IRS page for CP71D says that if you are already working with a revenue officer, you should contact that officer about payment options.

In other words, your account is in the IRS collection system, it has been there a while, and the computer is making sure you have not forgotten.

What the IRS says can happen if you do nothing

The IRS lists the consequences on its CP71D page:

It may file a Notice of Federal Tax Lien, subject to your Collection Due Process rights, telling your creditors it has a claim against your property.
It may assign your account to a private collection agency.
Interest continues to accrue, and additional penalties may apply.

The private collection agency point comes from IRC 6306, which requires the IRS to use qualified collection contracts for certain inactive tax receivables. If you are told a private agency has your account, verify it through the IRS's private debt collection information before you pay anyone. Payments always go to the IRS, never to the agency.

An annual reminder is the quietest notice the IRS sends. Quiet is not the same as harmless.

About the lien warning

A Notice of Federal Tax Lien is a public filing that tells your creditors the government has a claim against your property. It can affect your ability to borrow, refinance, or sell. It does not take money out of your account. That is a levy, which is a different tool.

The lien comes with rights. IRC 6320 requires the IRS to notify you in writing within 5 business days after it files the notice of lien, and gives you a 30-day period, beginning the day after those 5 business days, to request a hearing. If you receive that notice, often a Letter 3172, the hearing deadline on it is the one that counts.

The passport warning

IRC 7345 defines seriously delinquent tax debt as an assessed, legally enforceable federal tax liability above a dollar threshold, where a lien has been filed and the lien hearing rights have been exhausted or lapsed, or where a levy has been made. The statute sets the base threshold at $50,000 and adjusts it for inflation each year, so check the current figure on IRS.gov.

The statute excludes debts being paid on time under an installment agreement or an accepted offer in compromise, along with certain others. If you are near the threshold, getting into a payment arrangement does more than stop interest from compounding on your mind. It can keep the debt off the certification list. Our guide to passport certification letters covers the related notices.

Your options

The IRS page lays them out, and they are the same tools that resolve most balances:

Pay in full. Interest and applicable penalties stop when the balance is paid. Pay online for instant confirmation, or mail the payment with the bottom part of the notice.
Pay what you can and set up a plan. The Online Payment Agreement tool gives immediate notice of approval if you qualify. You can also mail an installment agreement request or call.
Ask for a collection delay if you are in hardship. The IRS says it may temporarily delay collection until your situation improves.
Consider an offer in compromise. The IRS describes it as a way to settle for less than the full amount in some circumstances, and it offers a pre-qualifier tool.

If you already paid or have a plan

The IRS says payments can take up to 21 days to post. If you paid in full within the last 21 days, disregard the notice. If you have an approved installment agreement, keep making payments under it. If you applied for an agreement but have not been approved yet, pay as much as you can now to slow interest and penalties.

If you disagree

Call the toll-free number on the notice. The IRS asks you to have your paperwork ready, such as proof you paid or proof you don't owe the tax. If the balance comes from a return the IRS prepared for you, or from an audit you never responded to, ask what procedures are still available to dispute the underlying tax. The answer depends on the history of that period.

Check the age of the debt

IRC 6502 generally gives the IRS 10 years after assessment to collect by levy or court proceeding, unless that period is extended or suspended. Annual reminder notices often involve older balances. Look at the assessment dates on your account transcript before you choose an option. Our guide on how long the IRS has to collect explains the basics.

What to do now

Confirm the period and balance on the notice against your online account or transcript.
If a revenue officer is assigned, contact that officer.
Choose an option: full pay, a payment plan, a hardship review, or an offer.
Update your address with Form 8822 if you have moved, so future notices reach you.
Adjust withholding or make estimated payments so a new balance does not pile on top of the old one.

What not to do

Do not assume the IRS forgot about you because years passed. The annual reminder exists precisely so you know it hasn't.

Do not pay a caller who says they are from a collection agency without verifying it first.

Do not let a new year go unpaid. New balances complicate every resolution option.

The law behind CP71D

IRM 21.3.1.6.33.3 describes CP71D as the annual reminder for balances of $25 or more in a particular collection status. IRC 7345 governs passport certification and its exceptions. IRC 6306 governs private debt collection. IRC 6502 sets the 10-year collection period.

If an annual reminder has you wondering what your real options are, call us at (813) 229-7100.