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IRS Letter CP503

Why are you receiving this letter?

You received IRS letter CP503 because the IRS has not heard from you and you still have an unpaid balance due and owing to the IRS.

EasyYou agree with the notice
  • You can pay in full online at www.irs.gov/payment. 
  • You owe less than $10,000 and would like to set up an installment agreement.  You can call the number on the top right hand corner of your IRS letter and the IRS will give you up to 72 months to pay back the taxes.
Still have questions? Contact us
Medium You don’t agree with the notice, but owe less than $25,000
  • Your tax balance is less than $25,000.
  • You don’t have unfiled tax returns.
  • You are unable to pay back the taxes in full.
  • You would like to discuss this with someone not working for the IRS to understand what is going on and the options you have.
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Serious You don’t agree with the notice and owe more than $25,000
  • Your tax balance is greater than $25,000.
  • You have unfiled tax returns. 
  • You are unable to pay back the taxes in full.
  • You would like to negotiate down the tax balances.
Schedule A Consultation

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      What you should do?

      Read your notice carefully. The notice explains how much you owe, for which tax year, and for which tax form. On our notice example, the balance is due from tax year 2013 and Form 1040.

      You should consider your options for resolving the taxes. This includes paying the balance in full or setting up an arrangement with the IRS. You can call the IRS to request more time to evaluate your options. The IRS will ask you for information such as where you work, where you bank, and if your business has any government contracts. This information is requested to update the IRS system for potential levy sources.

      Contact a tax professional to explore your options for making an arrangement with the IRS.

      What can you expect next?

      IRS letter CP503 is considered a tax bill. The IRS asks that you pay the balance due in full. You do have options, but if the tax bill is left unpaid, the next letter you may get is CP504: Notice of Intent to Seize (“Levy”) Your State Tax Refund or Other Property. The IRS will inform you that they may move forward with filing Federal Tax Liens and/or Tax Levies on your wages, bank accounts, state & federal tax refunds, etc.