After receiving a CP501/502 with no action taken on the taxpayer’s end, the CP503 letter will be the next letter that shows up in the mail, titled “Immediate action Is Required”.
This notice alerts you that you have not followed up from the previous letters and that you will only have 10 days to comply before future negligent actions are taken. Upon receiving this notice, you have a few options but it is imperative you act immediately.
The first and most beneficial option is by paying the total owed amount in full. Paying your account off will not only eliminate your tax debt but will prevent future damages to be collected.
If you cannot pay your balance in its entirety, you can opt-in for a repayment plan that allows you to pay a partial amount of your debt every month. If this feels like the best option for you, do not wait until your 10 days are over; contact the agency immediately.
What’s important to note about this notice is that if this notice is neglected, the IRS will begin their protocol to take action on your personal assets.
After the CP503 is sent out and the 10-day compliance period has passed, the IRS will roll out their next letter: the CP504 – You Have an Amount Due – Intent to Levy. Find out more about this letter by clicking here.
Owing taxes is a serious matter if no action is taken. If you owe or think you owe back taxes and do not know where to start, consider hiring a CPA or other tax professional service to help you get on the right track.