CP71 Notice: Unpaid Balance and Passport Warning

The CP71 tells you that an unpaid balance on one of your tax accounts still needs immediate attention. It is a reminder, but it carries two warnings that catch people off guard: your future refunds can be applied to the debt, and in some cases the State Department can deny or revoke a passport.

What the notice means

A CP71 is not a new tax. It repeats a balance that the IRS says is already assessed and unpaid, and it asks you to deal with it. The IRS recommends paying online if you can, which provides instant confirmation, or signing in to your online account to see the amount you owe.

If you cannot pay in full, the IRS asks you to pay what you can now and set up a payment plan for the rest. It also refers to temporary collection delay for financial hardship and to an offer in compromise.

Refund offsets

The IRS explains that if you do not respond, it can apply future refunds to the balance. If you expect a refund next filing season, the IRS may keep it and use it toward this debt. Make estimated tax payments or adjust your withholding if you tend to owe, so you are not creating a new balance. See estimated taxes.

The passport warning

The notice refers to a federal law that generally prevents the State Department from issuing or renewing a passport if you have "seriously delinquent tax debt." The definition is set by law and depends on the size of the debt and what collection action has occurred. The IRS keeps a page on passport certification at irs.gov/passports. If you travel abroad or plan to renew, ask the IRS or a professional whether your balance falls within that definition and whether an agreement affects it.

This matters especially to families who travel internationally, including NRIs and others who visit relatives abroad. Do not wait until you are at the passport counter to find out.

Your options

• Pay in full. Interest and applicable penalties stop once the balance is paid.
• Pay over time. As of 2026, the IRS says individuals who owe $50,000 or less in combined tax, penalties and interest and have filed all required returns may apply online. Otherwise you can call or mail Form 9465. See installment agreements.
• Ask for hardship treatment. If paying would cause hardship, the IRS may place the account in a temporary delay. See currently not collectible status.
• Consider an offer in compromise. In limited cases, you can settle for less than the full amount. See offer in compromise.
• Dispute the notice. Call the toll-free number with documents, such as proof of payment or evidence you do not owe the tax.

If you already paid

The IRS says payments can take up to 21 days to post. If you paid in full recently, the notice may have crossed with your payment. Confirm in your online account that the payment posted, and call the number on the notice if it did not.

If you have an approved installment agreement, keep making your payments. If you applied but are not approved, pay as much as you can to limit additional interest and penalties.

Interest and penalties

Interest accrues on the unpaid balance until it is paid in full. A late payment penalty applies if you cannot pay the full amount, and additional penalties may apply. See failure-to-pay penalty.

Common mistakes

• Assuming a reminder is optional because the IRS explainer page lists no deadline. Your notice may still say when to act.
• Filing and expecting a refund, then being surprised when it is offset.
• Setting up a plan, then missing a payment, which can default the agreement.

When to involve a CPA

Call a CPA if you need your passport soon, if you owe for multiple years, or if the amount looks wrong. We can help with a payment plan or request relief, and we can discuss your account with the IRS under a signed Form 2848.

How we can help

We can review the balance against your records, set up a plan, and track follow-up notices. See our IRS representation services or contact us.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.