Notice CP71 looks routine. The IRS is legally required under IRC § 7524 to send you an annual reminder of your outstanding tax debt — so in that sense, this letter is just the government checking a legal box. But buried inside CP71 is information that could significantly affect your strategy for resolving the debt.

What CP71 Actually Contains

The notice updates your running balance including:

• Principal tax owed

• Accrued penalties (failure-to-pay, etc.)

• Interest calculated through the notice date

• The tax periods involved

What it doesn't tell you — but what matters enormously — is the Collection Statute Expiration Date (CSED). Under IRC § 6502, the IRS generally has 10 years from assessment to collect a tax debt. Once that clock expires, the debt is legally uncollectable.

Why the CSED Changes Everything

Taxpayers who owe large, old debts sometimes benefit from a "wait it out" strategy — particularly if they have no significant assets or income for the IRS to levy. But this is a high-stakes game. Certain actions (like filing for bankruptcy or signing a waiver) can pause or extend the CSED clock. Never make a CSED-based decision without attorney guidance.

Our attorneys review the full collection timeline, calculate every CSED date on your account, and advise you on whether to pay, negotiate, or wait — based on your actual numbers.

Schedule a consultation if you've been carrying IRS debt for years and aren't sure what your options are.