What is IRS Notice CP71A?

IRS Notice CP71A is an annual reminder that you have an unpaid tax balance. The IRS is required by law (IRC §7524) to send an annual notice to taxpayers with outstanding balances. Unlike CP14 (first notice) or CP501/CP503 (progressively urgent collection notices), CP71A is informational — it arrives once per year and tells you: the current balance including accrued interest and penalties, the tax periods involved, and a reminder that the debt continues to grow. CP71A is not itself a new collection action, but it is a signal that the IRS has not forgotten about your debt.

Why do I keep getting CP71A every year?

The IRS is required by IRC §7524 to send annual reminders to taxpayers with outstanding balances. You will continue receiving CP71A every year until one of the following happens: (1) you pay the balance in full, (2) the Collection Statute Expiration Date (CSED) passes — generally 10 years from the date of assessment, (3) your Offer in Compromise is accepted and you comply with the terms, (4) you enter into an installment agreement (but you still receive CP71A annually during the agreement — it serves as your progress statement), or (5) the debt is discharged in bankruptcy.

How much does my debt grow each year I receive a CP71A?

Your IRS debt grows through three mechanisms every year: (1) Failure-to-pay penalty — 0.5% of the unpaid tax per month, capped at 25% of the original tax. Once the penalty cap is reached, this stops. (2) Interest — the federal short-term rate plus 3 percentage points, compounded daily. As of 2026, this is typically 7-8% per year. (3) If you have unfiled returns for subsequent years, new assessments add to the balance. A $10,000 debt left unpaid for five years can easily grow to $15,000-$18,000 through interest and penalties. This is why resolving the debt — through an installment agreement, OIC, or other means — is financially urgent.

Does receiving a CP71A mean new collection actions are starting?

Not necessarily. CP71A is an informational notice required by law, not a new collection action. However, the IRS will continue collection efforts unless your account is in a protected status: active installment agreement, currently-not-collectible (CNC) hardship status, pending Offer in Compromise, or bankruptcy automatic stay. If you're receiving CP71A with no active resolution in place, the IRS can resume collection actions — wage garnishment, bank levies, tax liens — at any time. The annual notice is the IRS reminding you that the debt is real and growing.

How do I stop getting CP71A?

To stop receiving CP71A, you must resolve the underlying tax debt. Options: (1) Pay the balance in full — stops all notices and collection permanently. (2) Enter into an installment agreement — you receive CP71A annually as a progress statement, but collection actions are suspended. (3) Submit an Offer in Compromise — if accepted and you comply with terms, the debt is settled for less than the full amount and notices stop after the OIC terms are satisfied. (4) Request currently-not-collectible status — collection pauses, but you continue receiving CP71A annually and interest accrues. (5) Wait for the CSED to expire — 10 years from assessment, the debt becomes legally uncollectible.

Taxpayer receiving annual IRS CP71A reminder

Annual Reminder — IRC §7524

IRS Notice CP71A: Annual Balance Reminder

Every year, the IRS sends you a CP71A reminding you that your tax debt still exists — and has grown. This notice means your debt is unresolved and accruing interest. The longer you wait, the larger it gets.

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What CP71A Actually Means

CP71A is not a collection notice — it's the IRS's legally required annual notice. But don't mistake "informational" for "harmless." While the IRS sends you this reminder, interest compounds daily, penalties accumulate to their cap, and the Collection Statute Expiration Date (CSED) slowly approaches — but never fast enough to outpace the financial damage. Each year you receive a CP71A without resolving the underlying debt, you lose thousands of dollars to interest that could have been avoided.

The Real Cost of Ignoring CP71A

Year	Original $10,000 Debt	Interest @ 8%	Penalty @ 0.5%/mo	Total
Year 1	$10,000	$800	$600	$11,400
Year 2	$10,000	$1,712	$1,200	$12,912
Year 3	$10,000	$2,745	$1,800	$14,545
Year 4	$10,000	$3,908	$2,400	$16,308
Year 5	$10,000	$5,208	$2,500*	$17,708

* Penalty capped at 25% of original tax after 50 months.

Frequently Asked Questions

If I have an installment agreement, will I still get CP71A?

Yes. The IRS is still required to send the annual reminder even if you're making payments. The CP71A in this case serves as your annual progress statement — showing payments applied and remaining balance. As long as your installment agreement is active (you're making required payments), you are protected from levy action.

What if my CP71A has incorrect amounts?

If the balance on CP71A doesn't match your records, pull your IRS account transcript at IRS.gov/account or by filing Form 4506-T. Common causes of discrepancies: payments not properly credited (wrong tax period or SSN), identity theft (someone filed a return under your SSN), or the IRS hasn't processed an amended return you filed. Contact the IRS or your tax professional to reconcile the account.

Can the IRS levy my wages while sending CP71A?

Yes — CP71A by itself does not prevent levy action. The IRS can levy wages, bank accounts, and other assets while simultaneously sending you annual reminders. Only an active installment agreement, currently-not-collectible status, pending OIC, or bankruptcy automatic stay prevents levy. The CP71A is informational — not protective.

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