IRS notice CP503
CP503 notice: second reminder of an unpaid balance
A CP503 is the IRS’s second reminder that you still owe a balance on one of your tax accounts. It arrives because the IRS has not heard from you after its earlier notices, and the next notice in the sequence is a notice of intent to levy.
What to do
Pay the entire balance by the due date on the notice to avoid more penalties and interest, online or by mail with the bottom part of the notice. If you cannot pay it all, you may qualify for a payment plan through the IRS’s online payment agreement application, or by mailing an installment agreement request.
If you disagree, or have already taken corrective action, call the toll-free number on the notice by the payment due date. The IRS asks you to call even if you have already fixed it, so your account reflects what you did. You can also request an appeal under the Collection Appeals Program before collection action is taken.
What happens if you do not respond
If you do not pay, make payment arrangements or call, the IRS may file a Notice of Federal Tax Lien if it has not already. A lien is a public notice to your creditors that the IRS has a right to your current assets and any you acquire later, and it can affect your ability to get credit.
After the CP503, an unpaid balance is followed by the CP504, the IRS’s notice of intent to levy.
Returns to file before you can set up a plan?
The IRS generally wants every required return filed before it agrees to a long-term payment plan, and a notice can be the first sign that a year is missing. USTAXX prepares current and past-due returns, one year at a time, so the account is complete. We are an IRS Authorized e-file provider and work with clients remotely through a secure portal, by phone or video, and in person at our office in Naperville, IL.
Questions people ask
What is a CP503 notice?
The IRS’s second reminder that you still owe a balance, sent because it has not received payment or a response to its earlier notices.
How much time do I have to pay a CP503?
Until the due date shown on the notice. Paying the entire balance by then avoids additional penalties and interest.
What comes after a CP503?
If the balance stays unpaid, a CP504, the notice of intent to levy. The IRS may also file a Notice of Federal Tax Lien.
Where these rules come from
- IRS: Understanding your CP503 notice
- IRS: Publication 1660, Collection Appeal Rights
- IRS: Payment plans and installment agreements
- IRS: Notice 746, Information About Your Notice, Penalty and Interest
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.