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IRS NOTICES: TAX DEBT

What is a CP503 notice?

Jo Willetts, EA Director of Tax Resources, Jackson Hewitt Published On June 10, 2020

IRS notices are letters sent to inform taxpayers of important tax information. Each one is different, but we can explain what the CP503 is about.

Understanding your CP503 notice

You have an unpaid balance on one of your tax accounts and the IRS is reminding you again to pay the balance.

Type of Notice

Tax debt

Why you received the CP503 notice

You received a CP503 notice because you owe the IRS money and you make your payment by the due date OR the IRS has been sending notices about your unpaid taxes and you have not responded.

Likely next steps

As always, carefully read the notice, which will outline how much you owe, the due date, and any payment options that are available.

Then, you need to make the payment by the due date. You can also contact a tax professional to learn more about your options.

CP503 Notice deadline

You have 10 days to pay the balance or you will owe additional penalties and interest.

If you miss the deadline

If you do not pay your unpaid tax balance within 10 days, you will owe the IRS additional penalties and interest. The IRS can also file Notice of Federal Tax Lien giving them legal claim to your property as security or payment for your debt.

About the Author

Jo Willetts, Director of Tax Resources at Jackson Hewitt, has more than 25 years of experience in the tax industry. As an Enrolled Agent, Jo has attained the highest level of certification for a tax professional. She began her career at Jackson Hewitt as a Tax Pro, working her way up to General Manager of a franchise store. In her current role, Jo provides expert knowledge company-wide to ensure that tax information distributed through all Jackson Hewitt channels is current and accurate.

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