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CP501H notice: what it means and what to do
Got an IRS CP501H 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 CP501H notice freeWhat the IRS says this notice is about
We are notifying you of the unpaid balance for your Shared Responsibility Payment (SRP) account.
What you need to do
You must pay the amount you owe immediately but no later than the due date shown on your notice.
- Read your notice carefully. It explains how much you owe, when it is due, and your payment options.
- Go to the Payments page to make a payment or learn about the other payment options available.
- Apply online for a payment plan to pay off your balance over time if you can’t pay the full amount you owe now.
- See if you qualify for an offer in compromise (OIC) which would allow you to settle your tax debt for less than the full amount you owe.
- Request a temporary collection delay if you’re experiencing financial hardship.
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.
You may want to
- Review this notice with a tax professional.
- View additional information about your tax account .
- Review Publication 5187, Affordable Care Act: What You and Your Family Need to Know PDF .
Common questions
What is the Shared Responsibility Payment?
The Shared Responsibility Payment (SRP) is the amount you owe for not having minimum essential health coverage for yourself and other members of your household or qualifying for an exemption from coverage per Internal Revenue Code Section 5000A - Individual Shared Responsibility Payment.
What happens if I can't pay the full amount I owe now?
You can pay the amount you owe over time when you apply for a payment plan online.
What if I have questions, don’t agree, or have already taken corrective action?
Call us at the phone number shown on your notice to speak with one of our representatives if you have any questions or disagree with the information on your notice.
If you've already taken corrective action, you should still call us to make sure we have a record of your action and verify that your account information is correct.
Will I be charged interest on the money I owe?
We are required by law to charge interest when you don’t pay your liability on time. Unlike penalties, we cannot reduce or remove interest due to reasonable cause. Interest accumulates daily, so the longer you wait to pay, the more interest we add to your account. Visit IRS.gov/interest for more information. See your notice for more information on the interest that may have been applied to your account.
Will I receive a penalty if I cannot pay the full amount?
No, penalties do not apply to the SRP. The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you.
How much time do I have?
You need to pay your balance by the due date shown on your notice or additional interest will be added.
What if I need to make a correction to my tax return?
You'll need to file Form 1040-X, Amended U.S. Individual Income Tax Return PDF .
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