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CP71H notice: what it means and what to do
Got an IRS CP71H notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP71H notice freeWhat the IRS says this notice is about
You received this notice because you still have an unpaid Shared Responsibility Payment (SRP) balance on one of your tax accounts from before 2019 and it requires your immediate attention.
Under the Tax Cuts and Jobs Act, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018. However, we are still required to collect unpaid SRP amounts for years where you or your dependents did not have minimum essential health coverage.
For more information on how to obtain healthcare coverage, visit HealthCare.gov .
What you need to do
- Pay your unpaid balance. Interest will stop being added as soon as you pay your balance in full. Pay the amount you owe online . It's fast, secure, and you'll receive instant confirmation of your payment. Sign in to your account to view the amount you owe.
- Mail your payment in the envelope we sent if you can't pay online. Include the bottom part of the notice to make sure we correctly credit your account.
- Pay as much as you can now even if you can't pay the full amount you owe. Set up a payment plan to pay the remaining balance over time. You may qualify for a payment plan by applying online through the online payment agreement tool . You'll receive immediate notification if your payment plan is approved.
- Mail your installment agreement PDF or call us at the toll-free number on your notice if you can't apply online.
- IRS may temporarily delay collection if you're facing financial hardship until your situation improves.
- Under certain circumstances, an offer in compromise allows you to settle your tax debt for less than the full amount you owe. This may be a legitimate option if you can't pay your full tax liability or doing so creates a financial hardship. Access the Offer In Compromise pre-qualifier tool to see if you qualify.
What if I don’t respond?
Interest will continue to accrue on your account.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
Common questions
What is the shared responsibility payment (SRP)?
It's the assessed payment for not having minimum essential health coverage for you and, if applicable, your dependents in the tax year that ended December 31 of the year shown on your notice per Internal Revenue Code Section 5000A - Individual shared responsibility payment. Under the Tax Cuts and Jobs Act, the amount of the individual shared responsibility payment is reduced to zero for months beginning after December 31, 2018.
What should I do if I disagree with the changes you made?
If you disagree with this notice, call the toll-free phone number provided on your notice. So we can best assist you, please have your paperwork (e.g., such as information indicating you've paid this debt or don't owe the tax) ready when you call.
What happens if I cannot pay the full amount I owe now?
You can arrange to make a payment plan with us if you cannot pay the full amount you owe.
What if I sent a payment and/or established an installment agreement?
Payments you make can take up to 21 days to post on your account. If you paid your balance in full within the last 21 days, please disregard the CP71H you received. Sign in to your online account and see "View Balance Details" to see your balance and payment history.
If you have an approved installment agreement, continue making payments per that agreement. If you applied for an installment agreement, but haven't been approved, pay as much of your balance as you can now to stop additional interest and applicable penalties from adding to your balance.
Am I charged interest on the money I owe?
Not if you pay the full amount you owe by the date on the payment coupon. However, interest accrues on the unpaid amount after that date. See the interest explanation section of your notice.
Will I receive a penalty if I can't pay the full amount?
No. The law prohibits us from using liens or levies to collect any individual SRP. However, if you owe an SRP, we may offset that liability against any tax refund that may be due to you.
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