What Is an IRS 971 Notice and How Should You Respond?

Learn what an IRS 971 notice means, why you might receive one, and the steps to take for proper handling and response.

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A 971 notice from the IRS indicates that the IRS is responding to a taxpayer's inquiry or has initiated a specific action. This can involve identity theft, a request for an installment agreement, or other account adjustments. If you receive one, review it carefully and follow any instructions it provides. If you're unsure or need further clarification, contact the IRS directly or consult with a tax professional to ensure proper handling.**

FAQs & Answers

  1. What does an IRS 971 notice mean? An IRS 971 notice indicates that the IRS is responding to a taxpayer's inquiry or has initiated an action related to identity theft, installment agreements, or account adjustments.
  2. How should I respond if I receive an IRS 971 notice? You should carefully review the notice, follow the instructions provided, and if unsure, contact the IRS directly or consult a tax professional for guidance.
  3. Can an IRS 971 notice be related to identity theft? Yes, one of the reasons for issuing an IRS 971 notice is when the IRS is addressing identity theft concerns linked to your tax account.
  4. Is the IRS 971 notice related to installment agreements? Yes, the IRS 971 notice may be sent as part of the process for requesting or adjusting an installment agreement with the IRS.

Watch More

If you found this guide to the IRS 971 notice helpful, consider exploring our related content on other IRS notices, such as the CP2000 and CP501, as well as tips for dealing with identity theft and setting up installment agreements with the IRS.

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