Receiving a CP71a letter from the IRS is more than just a reminder—it’s a warning that your tax debt is growing.
The CP71a letter is sent annually to remind you that you still owe taxes, and with each passing day, interest and penalties continue to pile up. If you’ve received this letter, you need to act fast. Here’s what it means and why you can’t afford to wait.
What the CP71a Letter Means
The CP71a letter is a yearly notice alerting you to an unpaid tax balance. It shows the total amount you owe, including all accumulated interest and penalties since the debt was first assessed.
While this letter doesn’t mean the IRS will take immediate action like garnishing your wages or levying your bank account, it’s a clear signal that they could do so if you don’t take action. Your tax debt is not going to disappear on its own.
Why You Can’t Afford to Ignore the CP71a Letter
Ignoring the CP71a letter is a mistake that can lead to serious, irreversible consequences. If you continue to ignore your tax debt, the IRS won’t hesitate to escalate their efforts to collect what you owe. This could mean wage garnishment, bank account seizures, or even a lien on your property. The longer you wait to deal with your tax debt, the more difficult and costly it will become to fix.
What to Do If You Get a CP71a Letter
If you receive a CP71a letter, don’t ignore it—act now. Here’s what you should do:
- Read the Letter Carefully: Understand the full amount you owe, including how much of it is due to interest and penalties.
- Consider Payment Options: The IRS expects you to pay what you owe, but if you can’t pay the full amount, there are other options. You might qualify for an installment agreement, allowing you to pay off your debt in smaller, manageable payments over time.
- Consult a Tax Resolution Expert: If you owe $20,000 or more or have unfiled tax returns, getting professional help is crucial. David Rappaport, with 36 years of experience in tax resolution, can help you understand your options and negotiate with the IRS on your behalf.
Act Now Before It’s Too Late
The CP71a letter is a clear warning to address your tax debt immediately, before things get worse.
By taking action now, you can avoid the severe consequences that come with ignoring the IRS.
If you need help with your tax debt, contact David Rappaport at Rappaport Tax Relief today. With a proven history of helping clients resolve their tax issues, David is ready to provide the expert guidance and support you need to get back on track.
Call David at 917-488-8295 for a free consultation today.
David Rappaport is an Enrolled Agent with over 25 years of experience in the field of taxation. He specializes in representing clients before all administrative branches of the IRS and State Taxing Authorities.
October 24, 2024