IRS Just Sent Me an Annual Reminder of Balances Due (CP 71) – What Should I Do?

IRS Just Sent Me an Annual Reminder of Balances Due (CP 71) – What Should I Do?

The IRS goes through a series of notices in their collections system, from Cold (barely on the radar) to Smoldering Hot (requires immediate attention). Check out the links to learn more:

CP14 – Not too scary (Cold).
CP501 – Still pretty cool (Getting warmer).
CP503 – Getting warmer still
CP504 – Getting uncomfortable
Letter 1058/Letter 11 – (Final Levy Notice)—Smoldering hot—act now or lose your due process rights (your right to a hearing and a stop of collection)
CP90/CP91 – Another type of Final Notice of Intent to Levy (Smoldering hot)
CP92 or CP 242- IRS Seized Your State Tax Refund to Your Unpaid Federal Liabilities– (Smoldering hot, you just lost some money)
CP 523- Notice of Intent to Levy- Intent to Terminate Your Installment Agreement. (Red hot, the IRS will levy unless you take action)
CP71 – 10 Day Final Notice of Intent to Levy. You have already received a Final Notice more than 6 months ago. Act now!

The notice is Letter 71, Annual Reminder of Balances Due. Generally, the IRS sends this notice after sending you a CP 504, CP 90, CP 91, Letter 11, or Letter 1058. It is the sixth notice in the IRS’ collection series.

What can I expect because of this notice?

You have likely already received final collection notice(s), so you are open to levies and seizures at any time. This leaves you in a very vulnerable state, the IRS does not have to provide you with any further notification to take collection actions.

What can I expect next after this notice?

If you do not contact the IRS to discuss resolution options, without warning you can expect a wage garnishment or wage levy, bank levy, asset seizure, Social Security income levy or some combination.

What are my options?

What is my first step?

If you received a letter or notice, a decision must be made. Do you feel confident to handle this situation on your own? If it is a simple issue and you already know the answer, call, or write them. If the issue is more complicated, you need to hire a Certified Tax Resolution Specialist. The IRS or State will take full advantage of your lack of knowledge and experience.

What is Your Next Step?

The next step is to determine if the notice was sent in error. Do you have an outstanding tax liability? Do you have unfiled or incomplete returns?

Is There a Time Limit?

Yes! Each letter or notice from the IRS or State will indicate a date that you MUST contact them by. If you need more time, call the number on the notice or letter, and request an extension. DO NOT ALLOW the time to expire without contacting them or hiring a representative to contact them for you.

What You Don’t Want to Do!

What you don’t want to do is nothing. Your tax problems will only get worse if you ignore them. If you cannot pay, there are a number of potential solutions available to those who are otherwise in compliance. In compliance means having all tax returns filed and any balances paid or on a payment plan. If you have outstanding debts or unfiled returns, you need to get hire a Certified Tax Resolution Specialist.

Get Some Help

If you don’t know how to address the issue(s), have unfiled return/unpaid balances or just done feel confident, let the experts at Legacy Tax & Resolution Services represent you. Work with our team of Certified Tax Resolution Specialists to resolve your issue(s) quickly. Best of all, you don’t have to talk to the IRS or State; we can speak on your behalf.

Stop the stress and resolve your problems Call 800-829-7483 TODAY