• Look for any issues with your CP503 notice:
  • Do you agree with the amount the IRS claims you owe?
    • If you disagree, you have the right to dispute the IRS.
  • Do you have the means to pay the full amount?
    • If paying in full would create a financial hardship, you may qualify to settle the debt for less than the full amount. You may also qualify for a payment plan.
  • Is this your first time receiving a tax penalty?
    • You may qualify to eliminate some of those penalties through the first-time penalty abatement program.

If you agree with the balance due and have the means to pay it, paying as soon as possible will help you avoid additional interest and penalty charges.

The IRS Notice CP503 alerts you that you have not followed up on the previous letters with only 10 days to comply before more penalties, interest, and liens are issued. Upon receiving this notice, you have a few options but you must act immediately. This includes pursuing a payment plan, submitting an Offer in Compromise if you qualify, or appealing to reduce or remove your penalties.

This IRS notice includes:

• Tax Year
• Amount Due
• Payment Deadline
• Payment Options
• Failure-To-Pay Penalty and Interest
• IRS Contact Information

After the IRS sends a CP503 letter, they will be expecting your immediate response – whether that be sending payment or taking steps to resolve your tax liability. If there is inaction, then the IRS will send a final warning called notice CP504. This notice is your last chance to address your debt before they begin pursuing aggressive collection actions.

It is important to address your CP503 notice from the IRS as soon as possible and avoid receiving a CP504 and subsequent notices. The longer you ignore the IRS’s attempts to reach you, the more difficult it is to resolve your tax debt.

The first and most beneficial option is to pay the total owed amount in full if you can afford to. Paying off your account will eliminate your tax debt and prevent future IRS collection actions.

If you cannot pay your balance in its entirety, you can opt-in for a payment plan that allows you to pay your tax debt in monthly installments. If you would like to explore payment options, do not wait until your 10 days are over and contact the IRS or consult with a trusted tax professional immediately.

You can instantly pay your IRS CP503 Notice online or by mailing a check or money order.

You have the right to dispute the notice if you believe there’s an error, so it’s crucial to act quickly. You can challenge the notice by carefully reviewing the details, gathering supporting documentation that proves the inaccuracy of the IRS’s claim, and either submitting a written dispute or contacting the IRS directly through their provided contact information.

Keep in mind that a timely response is critical and failure to address the CP503 IRS notice can lead to more serious collection actions, including potential liens or levies against your assets. As your tax liability is becoming increasingly urgent with these subsequent notices, working with a trusted tax professional can help resolve or reduce your debt.