IRS Notices

IRS Notice CP501: Reminder of Balance Due

The CP501 is the second notice in the IRS collection sequence. It is a reminder that you have an outstanding tax balance that was not paid after the initial CP14 notice. The CP501 is not yet an enforcement notice, but it signals that the IRS is escalating the matter.

What the CP501 tells you

• The tax year and amount still owed (including any additional interest and penalties since the CP14)
• A payment due date
• Payment options and instructions

How it differs from the CP14

The CP14 is the initial balance due notice. The CP501 is a follow-up reminder. The balance on the CP501 will typically be higher than the CP14 because interest and failure-to-pay penalties continue to accrue daily. The tone is also slightly more urgent.

What to do

The response options are the same as the CP14: pay in full, set up an installment agreement, or contact the IRS if you disagree with the balance. If you cannot pay and have limited income, you may qualify for Currently Not Collectible status.

The CP501 is your last routine reminder before the IRS sends the CP504 notice, which introduces the threat of levy action. Responding at the CP501 stage gives you more options and more time than waiting for the CP504.

This information is for educational purposes only and does not constitute tax, legal, or financial advice. For official guidance, visit IRS.gov.