IRS Notice CP 503 – What to do when you receive this letter
A CP 503 IRS notice states the current balance due to the IRS in back taxes, and in a more demanding tone that the previous notices, states you given only ten days to make a payment toward the balance owed. Receiving a CP 503 highlights the fact that you ignored previous automated letters mailed by the IRS by choosing not to respond.
What must I do when I get a CP 503?
If you get a CP 503 notice in the mail, you need to provide payment for the amount that is stated on the IRS letter. The CP 503 notice has an enclosed envelope that you can use to send the bottom of the statement and a check for repayment.
I received a CP 503 notice, when is a proper time to respond?
Even though there is no requested due date on the CP 503, it is advantageous to phone the IRS immediately to set up a plan to pay the amount either in one sum or in installments. Once you provide a response and begin repayment, no more additional payments will be added to your total back taxes payment. Also, if you wait, you will receive more demanding letters with more threatening tones.
I am not capable of providing the IRS with a payment, what do I do?
Not everyone can afford to pay what they owe in one sum and the IRS understands that not everyone is a financially sound situation. That is why the IRS has an installment agreement to settle owed taxes. Do not think that if that if you are unable, you should not contact the IRS – this is a bad choice. They will continue to send threatening letters and eventually take action against you, such as a Federal Tax Lien Notice.
Can I contact the IRS to discuss a recieved CP 503 notice?
Any questions about this notice can be directed to any IRS representative. Just call the number that is listed on the letter and you can discuss how to resolve your current tax situation with a tax consultant.
I don’t think I should have received a CP 503, what do I do?
If you believe this notice was sent in error, contact the IRS to fix the situation and locate an efficient solution.