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 than the previous notices. It states that you are given only ten days to make a payment towards the balance owed. Receiving a CP 503 highlights the fact that you ignored the previous automated letters mailed by the IRS and chose 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 statement and a check for repayment.
I received a CP 503 notice, when is the 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 lump sum or in installments. Once you provide a response and begin repayment, no more additional payments will be added to your total back taxes paid. 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 can I do?
Not everyone can afford to pay what they owe in one lump sum and the IRS understands that not everyone is in a financially sound situation. That is why the IRS has an installment agreement to settle owed taxes. Do not think 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 CP 503 notice?
Any questions about this notice can be directed to an 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 can I do?
If you believe this notice was sent in error, contact the IRS to fix the situation and find an efficient solution.