Notice CP501: Reminder of a balance due

What CP501 means

• This notice is a reminder that you owe a balance on one of your tax accounts.
• You received it because the IRS hasn't received your payment or a response to the earlier notice asking you to pay.
• The notice explains how much you owe, when your payment is due, and your payment options.

How much time you have

The IRS doesn't set a fixed number of days for CP501. It says to pay by the due date shown on your notice.

If it is ignored, and what usually comes next

If you don't act, the IRS says:

• The IRS can file a Notice of Federal Tax Lien, a public notice that can affect your ability to get credit.
• Interest will build on the unpaid amount, and more penalties may apply.

The CP501 page doesn't name the next notice. The IRS describes CP503 as a second reminder and CP504 as its notice of intent to levy.

What you can do yourself

1. Pay by the due date, online or by mail in the IRS envelope, with the bottom part of the notice included.
2. If you can't pay it all, apply through the online payment agreement application or mail Form 9465.
3. Contact the IRS by your payment due date. Depending on your situation, the IRS may be able to remove the Failure to Pay penalty.
4. If you disagree, call the toll-free number on your notice right away. Have your supporting paperwork ready.
5. You can ask for an appeal under the Collection Appeals Program (CAP) before collection action, following the notice instructions.
6. If your return needs a correction, file Form 1040-X.

When to bring in an Enrolled Agent

The IRS notes that you can authorize someone to represent you or contact it for you. Consider getting help if:

• You can't pay in full and aren't sure which payment plan fits.
• You think the IRS figures are wrong, or a payment wasn't credited.
• You'd rather not deal with the IRS phone line yourself.

Official IRS resource

Read the IRS's own explanation: IRS, Understanding your CP501 notice (irs.gov).