You’ve Got Mail: Don’t Ignore a CP71C IRS Letter

If you received a stack of IRS mail and have enough courage to open it, you can’t miss those extra bold letters with the amount you owe. Now, you are making progress. The next step is to figure out what to do with this letter. But by the time you received a CP71C letter, chances are nothing has changed between you and the IRS. However, like all important mail, it should not be ignored. The course of action taken after receiving notice CP71C will determine the state of your account. It could either help or hurt your finances. Read on to find out about the steps you should take if you ever get a CP71C letter in the mail and contact a tax accountant in Pembroke Pines immediately.


What Is The CP71C Notice?

The CP71C is a formal statement or reminder of the amount you owe in tax. While this letter helps taxpayers avoid tax problems such as wage garnishments, it doesn’t give the IRS rights to come after you. Overall, this letter is sent out only if a tax balance is delinquent, and it may be sent out even years after the payment was originally due.

Do You Have To Pay Taxes On The CP71C Notice?

By the time you receive a CP71C, you are required to remit the total amount immediately along with penalties and fees that may have accrued over time.  It’s tempting to ignore the statement and hope the IRS will not seek further action but don’t.

If you are still unable to pay your balance, you can contact the IRS to set up a tax installment plan. A tax accountant in Miami can help with the whole process. At this point, you may want to make payment arrangements if you haven’t done so. You can learn about your payment options or submit an offer in compromise.

Take The CP71 Notice Seriously

Prior to receiving notice CP71C, you will receive other IRS notices. In other words, the taxpayer perhaps made no efforts to handle his or her tax situation. So, failing to address your tax disputes at this point may cause the IRS to impose a tax levy, which may tie your assets and at times your income. Also, you will continue to accrue interest and penalties that will eventually increase the total amount you owe the IRS.

Is There A Time Limit?

Every notice from the IRS or State shows a date you should contact them by. If you need more time to handle your specific circumstances and request an extension, call the number on the letter, and request an extension. Contact them soon or hire a tax accountant to contact them for you.

What To Do Next

Yes, it can be a little frightening receiving an IRS notice and you may have genuine reasons for not having responded yet. Read the letter carefully and take the appropriate actions to clear your balance. Ignoring your tax problems will only make them much worse. If you have outstanding debts, hire a CPA in Miami to help you resolve your tax debt.

Legal Disclaimer

Information only / No Legal Advice Intended

This publication is designed to provide general information regarding the subject matter covered. It is not intended to serve as legal, tax, or other financial advice related to individual situations. Because each individual’s legal, tax, and financial situation is different, specific advice should be tailored to the particular circumstances. For this reason, you are advised to consult with your own attorney, CPA, and/or another advisor regarding your specific situation.

To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. Always seek advice based on your particular circumstances from an independent advisor. Any disclosure, copying, or distribution of this material, or the taking of any action based on it, is strictly prohibited.

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