CP501 – Balance Due Reminder

What It Means:

The IRS sends a CP501 notice after previous notices (CP14) have gone unanswered. It’s a reminder that your business still has an outstanding tax balance and that collection actions are imminent. Additionally, penalties and interest are accruing.

Next Steps:

The first step is to read your CP501 notice and make a note of the payment deadline date.  

If you agree with the balance owed (including penalties and interest), you should:

• Pay the amount in full before the deadline, or
• Pay whatever amount you can and apply for a payment plan immediately.
• If you can’t pay anything at this time, contact a tax professional to explore other tax relief options.

If you disagree with the balance due, you should:

• Contact the IRS at the number listed in your CP501 notice. Be sure to have any supporting documentation on hand when discussing the matter with a representative.

You can also employ a tax professional to assist you with disputing the amount owed. Whatever you do, do not ignore this notice. Failure to reply will result in more aggressive collection actions, such as a tax lien and tax levy.

Need Help?

Call 855-774-0271 or complete our online form to schedule a Free Consultation with one of our tax specialists.