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CP503 notice: what it means and what to do
Got an IRS CP503 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 CP503 notice freeWhat the IRS says this notice is about
You received this notice because we haven’t heard from you and you still have an unpaid balance on one of your tax accounts.
What you need to do
- Read your notice carefully. It explains how much you owe, when your payment is due, and your payment options.
- Pay the amount you owe by the due date shown on the notice.
- Make a payment plan if you can't pay the full amount you owe.
- Contact us if you disagree by calling the toll-free number shown on your notice.
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
- View information pertaining to your tax account.
- Learn more about your payment options and how to make a payment arrangement .
- Request an appeal under the Collection Appeals Program (CAP) before collection action takes place by following the instructions on your notice.
Common questions
What is the notice telling me?
This notice is your second reminder that you still owe a balance on one of your tax accounts. You received this notice because we haven’t received your payment or a response to previous notice(s) requesting you pay this balance.
What do I have to do?
Pay the amount you owe by the due date shown on the notice. You can quickly and easily pay your balance online or mail us your payment in the envelope we sent you. Please include the bottom part of the notice to make sure we correctly credit your account.
If you can't pay the whole amount now, you may qualify for a payment plan (including installment agreements) by applying online through our online payment agreement application . You can also mail us an installment agreement request .
How much time do I have?
You must pay the entire balance by the due date shown on your notice to avoid additional penalties and interest.
What happens if I don't pay or respond to this notice?
If you don't pay the amount due, make payment arrangements, or contact us at the toll-free number on your notice, we may file a Notice of Federal Tax Lien if we haven't already done so. A tax lien is a public notice to your creditors that the IRS has a right to your interests in your current assets and any assets you acquire after we file the lien; it can affect your ability to get credit.
Who should I contact?
If you have any questions about this notice, call us at the toll-free number shown on your notice by your payment due date to speak to a customer service representative.
What if I don't agree or have already taken corrective action?
If you don't agree, contact us immediately to discuss your matter with a customer service representative. We'll do our best to assist you.
If you have already taken corrective actions, you should still call us at the toll-free number shown on your notice to make sure your account accurately reflects the actions you've taken.
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