VALID › Notice Library › CP501 notice
In the IRS’s own words · not reviewed by VALID
CP501 notice explained, in the IRS’s own words
This notice is a reminder that you owe a balance on one of your tax accounts. You received this notice because we haven't received your payment or a response to the previous notice requesting you pay this balance.
Read the full CP501 page on irs.gov ↗
What this notice is about
This notice is a reminder that you owe a balance on one of your tax accounts. You received this notice because we haven't received your payment or a response to the previous notice requesting you pay this balance.
What you need to do
- Read your notice carefully. It explains how much you owe, when your payment is due, and your payment options.
- Pay the amount you owe by the due date shown on the notice.
- Make a payment plan if you can't pay the full amount you owe.
- Contact us if you disagree by calling the toll-free number shown on your notice.
You may want to
Request an appeal under the Collection Appeals Program (CAP) before collection action takes place by following the instructions on your notice.
Frequently asked questions
What do I have to do?
Pay the amount you owe by the due date shown on the notice. You can quickly and easily pay your balance online or mail us your payment in the envelope we sent you. Please include the bottom part of the notice to make sure we correctly credit your account.
If you can't pay the whole amount now, you may qualify for a payment plan (including installment agreements) by applying online through our online payment agreement application. Or you can mail us a Form 9465, Installment Agreement Request.
What should I do if I disagree with any changes made to my account?
If you disagree with the changes, call us immediately at the toll-free number shown on your notice. Please have your supporting paperwork (such as cancelled checks, amended return, etc.) ready when you call.
What happens if I don't pay or respond to this notice?
If you don't pay the amount due, make payment arrangements, or contact us at the toll-free number on your notice, we can file a notice of federal tax lien.
In addition, interest will accrue on the unpaid amount and additional penalties may apply.
Am I charged interest on the money I owe?
Yes, we charge interest on underpayments of any outstanding balance until the amount is paid in full. See the "Your bill summary" section on your notice for the total interest charged.
Will I receive a penalty if I can't pay the full amount?
You can call us at the toll-free number on your notice if you can't pay the full amount or you can apply online for a payment plan. Contact us by your payment's due date, and depending on your situation, we may be able to remove the penalty.
What if I need to make a correction to my tax return?
You'll need to file Form 1040-X, Amended U.S. Individual Income Tax Return PDF.
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.
Run a tax firm?
Notice Desk drafts the CP501 client email, the response letter and the deadline, citing the law, for your licensed staff to review and sign.