Tax Relief AnswersIRS Notices CP501 and CP503
The short answer
CP501 and CP503 are reminders that a balance on one of your tax accounts is still unpaid. The IRS calls CP501 "a reminder" and CP503 "your second reminder." Neither is a levy notice. Both say the IRS may file a Notice of Federal Tax Lien if you do not pay, arrange a plan, or call by the due date shown on the notice. Sources: IRS, Understanding your CP501 notice and IRS, Understanding your CP503 notice.
How the two notices compare
| Item | CP501 | CP503 |
|---|---|---|
| What the IRS page calls it | "A reminder that you owe a balance on one of your tax accounts" | "Your second reminder that you still owe a balance" |
| Why you got it | The IRS has not received your payment or a response to the previous notice | The IRS has not heard from you and you still have an unpaid balance |
| Deadline | The due date shown on the notice | The due date shown on the notice |
| If you do nothing | The IRS can file a notice of federal tax lien; interest accrues and additional penalties may apply | The IRS may file a Notice of Federal Tax Lien if it has not already |
| Levy mentioned? | No | No |
| Appeal | Collection Appeals Program (CAP) before collection action takes place | Same |
| Page reviewed | July 22, 2026 | December 16, 2025 |
A lien is the government's legal claim to your property. The notice of it is public and, the IRS says, "can affect your ability to get credit." See federal tax lien.
What to do
- Confirm the balance is the same one billed on your CP14. If you never got a CP14, call the number on the notice and ask for an account transcript.
- Pay in full by the due date if you can, online or with the envelope and the bottom part of the notice.
- If you cannot, apply online for an IRS payment plan or mail Form 9465. Once a plan is approved, the failure-to-pay penalty rate drops by half.
- If paying would leave you unable to cover basic living expenses, ask about Currently Not Collectible status.
- If you disagree, call the toll-free number on the notice. The CP501 page says that, depending on your situation, the IRS may be able to remove the penalty.
- Do not wait for the next notice. The one after CP503 is CP504, which lets the IRS take your state tax refund.
What these notices do not mean
- They do not authorize a levy. The IRS pages for CP501 and CP503 do not mention levies at all.
- They do not start the 30-day Collection Due Process clock. That begins with the final levy notice, LT11 or Letter 1058.
- They do not reduce what you owe or pause interest.
- Receiving both does not mean two debts. They are two reminders for the same balance.
If you are thinking about paying a company to handle a CP501, know that the response is a phone call or an online payment plan application, both free.
FAQ
Is CP503 more serious than CP501?
It is the second reminder for the same balance, and both warn of a possible lien. The step after CP503 is CP504, the Notice of Intent to Levy.
Can the IRS file a lien after CP501?
The IRS page says it can file a notice of federal tax lien if you do not pay or arrange payment by the due date.
Can I appeal?
Both pages point to the Collection Appeals Program (CAP) before collection action takes place; follow the instructions on your notice.
Can I skip straight to a payment plan?
Yes. The online application is open to individuals who owe $50,000 or less in combined tax, penalties and interest and have filed all returns, per the IRS payment plan page.