USTaxPenaltySaverCP501
High PriorityFirst Reminder - You Have an Unpaid Balance
First reminder that your tax balance remains unpaid.
Response Deadline
30 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
The IRS sends CP501 approximately 8 weeks after the CP14 if no payment or response has been received. This is a reminder that penalties and interest continue to accrue. As of 2024, the IRS extended the interval between reminder notices from 5 weeks to 8 weeks.
Why You May Have Received This
- 1Did not respond to CP14 notice
- 2Payment was not received or processed
Required Actions
1
Pay the balance immediately
2
Set up a payment plan if needed
3
Contact the IRS if you disagree with the amount
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- CP503 will be sent in approximately 8 weeks if no response
- Balance continues to grow with interest and penalties
- May affect ability to get certain loans or contracts
Tips & Best Practices
- The amount has increased due to continued interest and penalties
- Setting up an installment agreement can stop additional penalty accrual
- You can apply for a payment plan online for balances under $50,000
Related Resources
Legal References
IRC § 6651(a)(2)IRC § 6601IRM 5.19.1
Ready to Take Action?
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