San Mateo, CA:
The IRS gets busy just like the rest of us. They are especially busy now with many of the things affecting their organization coming from the current administration. Politics aside, the IRS is still very much "in business".
IRS NOTICE CP71C
I have recently seen an uptick in the number of clients and potential clients that are receiving IRS NOTICE CP71C letters. Those letters are advising taxpayers that they have a balance due for a tax year on their account. Some clients have been blissfully hoping that the IRS has "lost track" of their account and some how, miraculously, their past tax debt has disappeared! Unfortunately for them, that is not the case.
The CP71C is almost like a "refresher" letter. Rather than harsh tones, the IRS is simply INFORMING the taxpayer that there is a balance due and the various ways to clear up that situation. It is often sent after a period of time where the IRS has not reached out in a while to delinquent taxpayers. It gives an opportunity for the taxpayer to get into compliance.
More importantly for the IRS, it gets the taxpayer back into the IRS collection system (the automated system that "spits out" letters when no action is taken and the letter is deemed ignored)---with the more threatening letters to come.
What should I do if I get a CP71C?
As with all IRS notices, carefully read the letter fully, noting the tax year and amount that the IRS says is due. Does this "jive" with your recollection and records or is something wrong? The IRS does make mistakes!
Next, do not ignore the notice if everything appears correct. The refresher notice is a great opportunity to get your tax situation moving towards resolution with the IRS--whether that be with an installment agreement, and offer in compromise, or proving uncollectible status based on financial hardship.
It is unlikely the IRS is going away anytime soon. As adjustments are made in Washington DC, it may get harder and harder to get someone at the IRS to help, so consider reaching out to a tax attorney or tax professional who will evaluate your situation and make suggestions on how to get yourself OFF OF THE IRS MAILING LIST!
Law Office of Kevin Rego
650.933.5222
Disclaimer: The information provided is intended to provide a general overview of the topic presented. It is not intended to be a legal interpretation of your individual tax or legal situation. If there is a conflict between the information provided and any legal authority implementing or interpreting the topic, the legal authority shall prevail. Always seek legal advice from a licensed attorney. This article does not in any way establish an attorney-client relationship. That relationship can only be accomplished with both parties signing a mutual, written agreement.
