MEDIUM PRIORITY

IRS Notice CP501

First Reminder, Balance Due

⏱ Deadline: 21 days from notice date

The IRS previously sent you a CP14 and hasn't received payment. This is their first follow-up reminder. The balance has likely grown due to additional interest and penalties.

Common Causes

CP14 was ignored or missed
Partial payment made but balance remains
Payment arrangement not yet established

Your Options

Pay in Full

Pay the full balance at IRS.gov. Interest stops accruing on the day you pay.

Set Up Installment Agreement

Apply for a monthly payment plan online. Streamlined agreements available if you owe under $50,000.

Request Currently Not Collectible Status

If you genuinely cannot pay without financial hardship, the IRS can temporarily pause collection.

⚠️ Do Not Ignore This Notice: Continued inaction escalates to CP503, then CP504 (Notice of Intent to Levy). Each step adds penalties and reduces your options.

💡 Pro Tip: Even if you can't pay in full, setting up a payment plan at this stage shows good faith and prevents much harsher collection action.

Frequently Asked Questions

What is a CP501 notice?

A CP501 is the IRS's first follow-up after a CP14 goes unpaid. It means your balance has grown and the IRS is asking again for payment.

Is a CP501 serious?

It is more urgent than a CP14. Ignoring it leads to escalating notices and eventually levy action against your bank accounts or wages.

What should I do when I get a CP501?

Pay in full, set up a payment plan, or call the IRS to discuss your options. Do not ignore it.

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This page provides general information only and does not constitute legal or tax advice. Built by Tyrone J. Taylor, EA — Enrolled Agent, NTPI Fellow.