CP 503: IRS Second Notice of Balance Due – Meaning & Actions Needed
An IRS CP 503 notice is a letter that the IRS sends out to individuals as a reminder and a means to collect on a balance that the tax payer still owes. This letter is a final notice and follows previous attempts to receive payment. When you receive this letter it is important for you to read it carefully and to reply immediately because if you don’t, the IRS could take action against you.
When You Can Pay
When you receive the notice, first and foremost, don’t panic. Your action is needed quickly but you do have options. The first question you need to answer is can I pay the amount due? If you can, then all you need to do is to send in your payment. Your payment will be due usually about 10 days from when you receive the notice and should be mailed in the envelope provided. When you mail in your payment be sure to include the bottom part of the notice so that the IRS can properly credit the payment to your account. It is also a good idea to send your payment certified mail so that you have record of it being received.
If You Can’t Pay
If you cannot pay the amount due within the ten day time frame, you still need to take action. Your first course of action should be to call the number on the letter. According to the IRS website, those who cannot pay in full may be eligible for an installment plan. Another option would be to hire a tax specialist to help you negotiate with the IRS. A tax specialist is trained at dealing with the IRS and may get better results than what you can receive on your own. They can help to get a payment plan that you can afford.
What To Do If You Think The Bill Is In Error
If you think the notice has been sent to you in error you should immediately contact the number on your letter. Keep in mind however that the IRS rarely makes a mistake when sending out these notices and they are only sent after numerous other attempts have been made to collect on the amount due. If you really do believe that the bill is erroneous you should definitely call to get more information. If you are still not satisfied, it may be in your best interest to hire a tax specialist to help you with your situation.
What Will Happen If You Don’t Pay
You should never ignore a CP 503 notice as it is considered a final notice. If you do not act, the IRS will take action against you to collect on the debt. If you do not pay the bill by the due date or if you have not made installment plan arrangements, the IRS will have the right to take legal claim on your property by placing a lien on it. They also have the right to garnish your wages until your bill is paid in full. They will look for a means to collect the debt from you and if they find one, they will do what it takes to get your money.