CP71A Notice in Sacramento
Receiving a CP71A notice from the IRS can be alarming, but it’s important to understand what this letter means and how to respond effectively. The CP71A notice is an annual reminder from the IRS about your balance due on unpaid taxes. It serves as a warning that the debt is still outstanding and accrues interest and penalties until it is paid in full.
What the CP71A Notice Contains
The CP71A notice will include:
- Your total balance due, including taxes, penalties, and interest.
- A reminder that the IRS will continue to apply penalties and interest on the unpaid balance.
- Information on how to pay your debt or set up a payment plan.
Why You Shouldn’t Ignore the CP71A Notice
Ignoring this notice can lead to more severe consequences, such as wage garnishments, bank levies, or liens on your property. The IRS has powerful tools at its disposal to collect unpaid taxes, and avoiding communication with them only makes matters worse.
Steps to Take After Receiving a CP71A Notice
- Review the Notice: Ensure the information matches your records. If you disagree with the amount, gather your documents and contact the IRS or a tax professional.
- Pay the Balance: If possible, pay the balance in full to stop additional penalties and interest from accruing.
- Set Up a Payment Plan: If you can’t pay the full amount, consider setting up an installment agreement with the IRS.
- Seek Professional Help: If you’re overwhelmed or unsure how to proceed, consulting with a tax resolution expert like Rochelle Margucci can help you explore options such as an Offer in Compromise or other relief programs.
Don’t let the CP71A notice turn into a bigger problem. Reach out to Rochelle Margucci at 916-372-8577 for a free consultation.