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IRS Notice CP71C: Annual Balance Reminder

Notice CP71C is an annual reminder statement sent to taxpayers with an outstanding balance due. Unlike active collection notices (CP501-504), CP71C is informational — it confirms your balance, accrued interest and penalties, and the account

By Michael Brennan·3 min read·Updated April 23, 2026
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Notice CP71C is an annual reminder statement sent to taxpayers with an outstanding balance due. Unlike active collection notices (CP501-504), CP71C is informational — it confirms your balance, accrued interest and penalties, and the account's current status. CP71C is most commonly sent to taxpayers whose accounts are in Currently Not Collectible status or to taxpayers with accepted hardship designations.

What CP71C indicates about your situation

Receiving CP71C typically means: your account is not in active collection (no CP504 sequence active); but interest and penalties continue to accrue; and the IRS is reserving the right to resume collection in the future if your situation changes. CP71C does not require a response, but it is a reminder that the debt persists and will eventually need resolution.

What to do with CP71C

Review the balance for accuracy. If the balance is significantly different from what you expected, call the IRS. If your financial situation has improved since CNC designation, consider proactively setting up an installment agreement or Offer in Compromise — the debt continues growing with interest, so resolution is typically better than perpetual CNC. If you are still in hardship, no response is required.

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Frequently asked questions

Do I need to respond to CP71C?+

No response is required. CP71C is an informational annual statement. However, if your financial situation has improved, proactively addressing the debt is usually better than letting it grow.

Will the IRS restart collection after CP71C?+

CP71C itself does not indicate imminent collection. However, the IRS periodically reviews CNC cases — typically every 12-24 months — and may resume collection if your financial situation has improved. If that happens, you will receive new collection notices.

Does interest still accrue if I am getting CP71C?+

Yes. CNC and similar hardship statuses pause collection activity but do not stop interest and failure-to-pay penalties from accruing. The annual CP71C shows the updated balance reflecting accrued interest.

About the author

M

Michael Brennan

Senior Tax Policy Writer · Fresh Start Division Editorial

Michael Brennan is a Senior Tax Policy Writer at Fresh Start Division, focusing on IRS collections procedure, the IRS Fresh Start Program, and federal tax policy. Michael has written extensively on tax resolution for American taxpayers.

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