IRS Notice CP501: Reminder Notice of Balance Due

IRS Notice CP501 is a follow-up notice to the initial CP14 Notice and serves as a Reminder of Balance Due. This notice is sent to taxpayers who have not responded to the first notice or have failed to pay the amount owed in full. The CP501 reiterates the unpaid balance, including any additional penalties and interest that have accrued since the initial notice.

Key points in CP501 include:

• Amount due: A reminder of the outstanding tax balance.
• Payment instructions: How to make a payment or set up a payment plan.
• Warning of further action: A reminder that continued non-payment may result in more severe IRS actions, such as the issuance of a Notice of Federal Tax Lien or wage garnishment.

If taxpayers are unable to pay the full amount, the CP501 provides information on how to apply for an Installment Agreement or Offer in Compromise. It is important to respond promptly to avoid further escalation, such as receiving a Final Notice of Intent to Levy or IRS enforcement actions.