If you’ve received a CP71A notice from the IRS, you might feel worried and unsure about what it means for you.
This letter is more than just a reminder—it’s a serious warning about unpaid taxes. As a Michigan taxpayer, understanding what a CP71A notice is and knowing how to deal with it can help you avoid bigger problems in the future.
What is a CP71A Notice?
A CP71A notice is sent by the IRS to remind you that you owe back taxes from a previous year, including any penalties and interest that have been added on. The IRS usually sends this notice every year as a reminder that you still have unpaid taxes. Ignoring this notice isn’t a good idea because if you don’t take action, the IRS might take more serious steps to collect the money, like placing a lien on your property, garnishing your wages, or levying your bank account.
Why Did You Get a CP71A Notice?
The IRS sends a CP71A notice when you have a tax debt that hasn’t been paid. Here are some common reasons why you might get this notice:
- Unpaid Taxes: You owe taxes from a previous year that you haven’t paid.
- Unfiled Returns: You didn’t file a tax return for a year when you owe taxes.
- Penalties and Interest: Even if the original amount you owed was small, penalties and interest can make it grow significantly over time.
What Should You Do If You Receive a CP71A Notice?
1. Read the Notice Carefully
First, go through the CP71A notice to understand exactly what the IRS says you owe, including any penalties and interest. Make sure to compare the amounts with your own records to check for any mistakes.
2. Verify the Information
Make sure the details on the notice are correct. Check the tax year and the amount owed against your records. If something doesn’t seem right, gather any documents that prove your case.
3. Respond Quickly
Don’t ignore the notice. It’s important to respond to the IRS as soon as possible. The notice will tell you what steps to take next, like making a payment, setting up a payment plan, or contacting them for more details.
4. Know Your Payment Options
If you can’t pay the full amount right away, there are several options you can consider:
- Installment Agreement: This is a payment plan that lets you pay off your debt over time.
- Offer in Compromise: This option allows you to settle your debt for less than the full amount if you qualify based on your financial situation.
- Currently Not Collectible Status: If you’re facing financial hardship, you might be able to temporarily delay the IRS’s collection efforts.
5. Get Professional Help
Dealing with the IRS can be stressful, especially if you’re not sure what to do. A tax professional can help you figure out your options and work with the IRS on your behalf to find a solution.
Why Contact Jennifer Walker for Help?
Understanding IRS notices and the complex tax laws can be overwhelming. Jennifer Walker, a tax professional in Michigan, specializes in helping people resolve their tax issues quickly and effectively. With her experience and knowledge, she can help you figure out the best steps to take after getting a CP71A notice and help you handle your tax debt.
Jennifer can assist you with:
- Reviewing Your Notice: Making sure you understand what the IRS wants and verifying that the information is correct.
- Exploring Payment Options: Finding the best way to pay off your debt based on your current financial situation.
- Negotiating with the IRS: Representing you and negotiating the best possible outcome, whether that’s a payment plan, an Offer in Compromise, or another solution.
Don’t let a CP71A notice cause you unnecessary stress. Take action today to resolve your tax issues and get back on track with the IRS. Contact Jennifer Walker at (248) 983-4829 to schedule a consultation and start working toward financial peace of mind.
