An official website of the U.S. Gov An official website of the U.S. GovYou have a balance on your tax account which you have not paid and the IRS has filed a public document, the Notice of Federal Tax Lien (NFTL), with the local and/or state authorities to alert creditors that the government has a right to your interests in any current and future property and assets.
Notice CP71C is an annual reminder notice of your balance due (taxes you owe), including tax, penalties, and interest. The notice also provides information on the criteria for denial of your passport application/renewal or revocation of your passport due to tax debt.
The IRS will “release” the lien once you have paid the debt in full — either in a lump sum or over time, or once the IRS is no longer legally able to collect the debt.
A “subordination” does not remove the lien but allows other creditors to move ahead of the IRS, which may make it easier to get a loan or mortgage.
The IRS Independent Office of Appeals (Appeals) serves as the administrative forum for any taxpayer contesting an IRS compliance action. If the IRS’s position is adverse to the taxpayer, Appeals is authorized to partially or fully concede the issue(s) in the taxpayer’s case based on the hazards of litigation.
An Initial Contact Letter is your notification that your tax return has been selected for an audit (also called an examination). Included in the letter is a listing of the specific items reported on your tax return or that you failed to include on your return that are being questioned by the IRS, with a request that you provide documentation to support the identified items.
The IRS Independent Office of Appeals (Appeals) serves as the administrative forum for any taxpayer contesting an IRS compliance action. If the IRS’s position is adverse to the taxpayer, Appeals is authorized to partially or fully concede the issue(s) in the taxpayer’s case based on the hazards of litigation.
IRS made the changes you requested to your tax return (i.e., an amended return) for the tax year on the notice you received. You now have a balance due as a result of the changes requested.
Taxpayer receives a notice or letter from the IRS and either chooses to respond to the notice or letter by paying their tax balance in full and/or filing missing tax returns; or pursuing a payment option; or the taxpayer chooses not to respond.
A “discharge” removes the NFTL from a specific property; however, the lien remains attached to all other property and future rights to property.
As the National Taxpayer Advocate, I advocate for all taxpayers, regardless of whether they reside in the United States or abroad. Our hearts go out to the impacted people in Israel, the West Bank, and Gaza because of the terrorist attacks beginning on October 7, 2023. I applaud the IRS for quickly providing filing and some payment relief for these taxpayers.
An Initial Contact Letter is your notification that your tax return has been selected for an audit (also called an examination). Included in the letter is a listing of the specific items reported on your tax return or that you failed to include on your return that are being questioned by the IRS, with a request that you provide documentation to support the identified items.
You have a balance on your tax account which you have not paid and the IRS has filed a public document, the Notice of Federal Tax Lien (NFTL), with the local and/or state authorities to alert creditors that the government has a right to your interests in any current and future property and assets.
