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IRS notices / CP501

IRS notice CP501: balance due reminder

A CP501 is a follow-up reminder that you still have unpaid tax on one of your accounts and the IRS hasn't received a payment or reply.

For individuals · Based on the IRS's own explanation of this notice

Deadline: Pay the balance by the due date on your notice.

What this notice means

The IRS already asked you to pay this balance, but it hasn't received your payment or heard from you. This notice follows up. It shows what you owe, when it's due and your payment options.

Interest is charged on the unpaid balance until it's paid in full, and a failure to pay penalty applies if you can't pay it all. The 'Your bill summary' section of your notice shows the interest charged so far.

Why you got it

What to do now

  1. Go over the notice closely. It lists the amount due, the due date and your options for paying.
  2. Pay by the due date. You can pay online or mail your payment in the envelope provided, along with the bottom part of the notice.
  3. If you can't pay it all, you may qualify for a payment plan. Apply online or mail Form 9465, Installment Agreement Request.
  4. If you disagree, call the toll-free number on your notice right away. Have records like canceled checks or an amended return ready.
  5. If you want to appeal before any collection action, you can request one under the Collection Appeals Program. Follow the instructions on your notice.

If you don't respond

If you don't pay, make payment arrangements or call, the IRS can file a notice of federal tax lien, which can affect your ability to get credit. Interest keeps growing, more penalties may apply, and a second reminder, the CP503, may follow.

Check the IRS's math. The penalty and interest calculator shows what the balance should be, charge by charge. Compare ways to pay. See what each month of waiting adds, and how an IRS plan compares with a card or a loan. Ask to have the penalties removed. See if you qualify for first-time abatement and get a ready-to-send letter.

Questions people ask

Am I being charged interest?

Yes. The IRS charges interest on any unpaid balance until it's paid in full. The 'Your bill summary' section of your notice shows the total so far.

Can the failure to pay penalty be removed?

It's possible. If you can't pay in full, call the toll-free number on your notice or apply online for a payment plan by your due date. Depending on your situation, the IRS says it may be able to remove the penalty.

What is a federal tax lien?

It's a public notice telling your creditors that the government has a claim to your current assets and to assets you get later. It can make it harder to get credit.

Related notices

This page explains the notice in plain English. Always follow the instructions and deadlines printed on your own notice. IRS: Understanding your CP501 notice

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