IRS Will Resume Issuing Balance-Due Notices

The IRS will resume mailing balance-due notices to taxpayers later this month. The 500 series balance-due notices were suspended temporarily in May because of a backlog in mail due to the Coronavirus pandemic.

balance-due noticesThe IRS has caught up on the backlog of mail and can continue issuance. Some taxpayers will begin seeing in late October or early November, the updated 500 series notices with current issuance and payment dates.

The 500 series balance-due notices alert taxpayers about varying stages of nonpayment.

The CP501 notice alerts individual taxpayers that they still have a balance due and what options are available to them. The CP503 alerts them that the IRS hasn’t heard from them and they may be subject to a lien if they don’t pay. The CP504 alerts taxpayers that they must pay their balances immediately or possibly face a levy of their state income tax refunds. These series of notices are generally sent to taxpayers if they don’t respond to or pay their initial notice and demand CP14.

Taxpayers should call the toll-free number on their notice to request penalty relief due to reasonable cause if they feel they qualify and have the necessary supporting documentation.

Join Our Newsletter

Sign up to receive exclusive newsletters with the latest information affecting you and your organization.

Posted in