The CP503 Notice or letter from the IRS is another one of those computer-printed letters from the IRS to let you know that they haven’t heard from you regarding the money you owe for back taxes. It’s another one of those notices you don’t want to ignore.
What You Need To Do
If you receive the CP503 Notice, read it carefully. It will tell you how much you owe when your payment is due and your payment options. But it won’t tell you all of your options. Chances are it won’t tell you about the Fresh Start Initiative or the Offer In Compromise Program. For information about those options, you’ll have to ask the IRS or a tax professional who can help you with these options.
Generally, the options presented by the IRS are the simple, straightforward options, including paying the balance or entering into a payment plan. You can contact the IRS if you disagree with the Notice. You can appeal the amount. Again, consult with a tax professional.
The Notice will usually have a deadline date for you to respond. If you don’t respond, the IRS could take other action, including filing a lien on your assets, and this can impact your ability to get credit.