By the time you receive a 71C Notice from the IRS, you’ve got some serious issues. The 71C Notice reminds you of not only the tax you owe but also the penalties and interest you owe. And the 71C Notice will also tell you either that your Passport has been revoked or your application for a Passport has been denied.
What’s With This Passport Stuff?
Now you’re probably asking why the IRS messed with my Passport? Well, Federal Law says taxpayers with significant IRS debt can’t have a Passport. I guess they don’t want you skipping off to another country.
What Should You Do?
So what should you do if you are sent a 71C Notice? Pay the bill if you can, get into a payment plan, or talk to a tax professional about your other options, including an Offer In Compromise or using the Fresh Start Initiative to limit or even eliminate your tax debt.