IRS Notice CP71A: Simple Guide to Your CNC Annual Reminder

IRS Notice CP71A is an annual reminder the IRS sends when you still have a balance due for a specific tax year, and that year is currently in Currently Not Collectible (CNC) status. CNC generally means the IRS has determined that, based on your financial situation, it is temporarily delaying active collection.

This notice can look and feel like a bill, which is why it worries people. In many cases, it’s simply the IRS doing what it’s required to do: sending a written reminder of a delinquent account at least annually.

If you’re in Cedar Rapids or Eastern Iowa (or you want a CPA firm that helps nationwide), CP71A is a good prompt to confirm your status, keep your plan on track, and avoid surprises if your finances have changed.

IRS Notice CP71A At a Glance

Notice purpose: Annual reminder of an unpaid balance for a year in CNC status
Who gets it: Taxpayers with one or more tax years currently marked not collectible due to hardship
Why you might get multiple notices: CP71A is often tax-year specific
Common timing: Sent annually after a year has been in CNC long enough to trigger the annual reminder cycle
Recommended action: Confirm the year and amount, and decide whether your CNC situation still fits your current finances

IRS Notice CP71A Explained, Section by Section

Section 1: Billing summary on IRS Notice CP71A

This section shows a breakdown of what the IRS believes you still owe for the tax year listed on the notice. It often includes:

The underlying tax amount
Penalties assessed
Interest charged
Any payments or credits posted (if applicable)

If you’ve made payments recently or you believe credits should apply, this is where discrepancies often show up.

Section 2: Payment coupon on IRS Notice CP71A

CP71A commonly includes a detachable coupon if you want to mail in a payment. Even if you’re in CNC, voluntary payments can reduce the balance and slow the growth of interest—as long as making a payment won’t put you back into hardship.

Section 3: What the IRS wants you to do on IRS Notice CP71A

This section usually asks you to pay by a certain date (often a short window like 21 days). But it also typically includes an important clarification: if you’re in CNC and your financial condition hasn’t changed, you may not need to do anything right now.

If you disagree with the amount, the notice generally provides a phone number to contact the IRS.

Section 4: Passport denial or revocation language on IRS Notice CP71A

CP71A may include general information about “seriously delinquent tax debt” and passport restrictions under federal law (Internal Revenue Code §7345). The key takeaway is this:

Passport restrictions apply only when specific legal conditions are met (not just because you owe).
Accounts in an approved resolution—such as CNC status—are generally not treated the same way as unresolved enforced-collection cases.

If you travel for work or have upcoming international plans, it’s worth confirming your overall account status (especially if you have non-CNC years or newer balances).

Section 5: Payment options and possible resolutions on IRS Notice CP71A

CP71A often lists common ways to resolve a balance, such as:

Paying in full
Setting up an installment agreement
Submitting an Offer in Compromise (when you qualify)
Requesting CNC (if you aren’t already in CNC for other years)

Section 6: What happens if you don’t respond to IRS Notice CP71A

Even in CNC, the IRS generally continues to add interest and applicable penalties until the balance is resolved or the collection period ends. The notice may also warn that the IRS can file a Notice of Federal Tax Lien in some situations.

Section 7: Additional information and recordkeeping reminders for IRS Notice CP71A

The final section usually includes administrative details—where to get forms, how to contact the IRS, taxpayer rights references, and a reminder to keep the notice for your records.

When the IRS Sends Notice CP71A

CP71A most commonly goes to taxpayers who have at least one tax year in CNC status and still have a balance for that year. The IRS also has a legal requirement (Internal Revenue Code §7524) to send delinquency reminders at least annually.

If you have some years in CNC and other years not in CNC, it’s possible to receive CP71A for the CNC years and a different annual reminder notice for other years.

What You Should Do If You Receive CP71A

Action 1: Match the notice to the correct tax year

Confirm the tax year listed and compare the balance summary to your records. CP71A is often year-specific, so don’t assume it covers everything you owe.

Action 2: Confirm whether that year is still in CNC

If you’ve had any changes since you were placed in CNC—new job, higher income, paid-off debts, new assets—it’s smart to verify whether CNC still fits your situation. If nothing has changed, CP71A may truly be informational.

Action 3: Decide whether “do nothing” is appropriate—or whether a proactive move helps

If your finances haven’t improved, maintaining CNC may be the right strategy while you stabilize. If your finances are improving, proactively planning (rather than waiting for an IRS review) can reduce stress and protect your cash flow.

Action 4: If you can resolve or reduce the balance, choose the safest option

Depending on your facts, the most practical move could be:

A manageable voluntary payment
A payment plan
Exploring an Offer in Compromise (if you’re a fit)

The best option is the one that reduces long-term risk without pushing you back into hardship.

Why Work With a CPA Firm, Not Just a Tax Relief Company

CP71A cases are often about maintaining compliance, confirming account status, and picking a plan that holds up over time—not chasing a quick pitch.

A CPA firm can look at the full picture: which years are in CNC, which aren’t, what’s accruing, what’s likely to be reviewed, and how your current-year tax planning affects next year’s IRS posture. That’s how you stay stable—rather than bouncing between notices.

How Corridor Consulting CPAs Can Help With CP71A

Corridor Consulting CPAs helps taxpayers in Cedar Rapids, Eastern Iowa, and nationwide by:

Confirming which years are in CNC and which are not
Reviewing balances for accuracy and identifying missing credits or misapplied payments
Evaluating whether CNC still makes sense based on today’s numbers
Comparing real-world options: voluntary payments, payment plans, or an Offer in Compromise
Building a compliance plan so new tax debt doesn’t restart the cycle

Take the First Step Toward IRS Tax Relief

IRS Notice CP71A is a reminder—not a reason to panic. But it’s a helpful prompt to verify your status, confirm your balances, and make sure your plan still fits your life today.

If you want calm, CPA-led guidance with clear next steps, Corridor Consulting CPAs is here to help—locally in Cedar Rapids and across the U.S.

Resources: Learn More About IRS Notices and Your Rights

Signup to receive notices of new insights

"Share the Wealth"

If you found this article valuable, why not share the wealth of knowledge? We’d be thrilled if you could pass it on to friends, colleagues, and your social network. Every share helps us reach and empower more people like you. Click the icons below to share and make a difference today!

Your sharing makes a huge impact in people’s lives – Thank you!