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Tax Term Explained

CP501 Notice — First Balance Due Reminder Explained

What a CP501 notice means, your deadline, and what happens if you do not respond.

A CP501 notice is a reminder that you still owe a balance the IRS previously billed you for.

What Triggered This Notice

Per IRS.gov: “You received this notice because we haven’t received your payment or a response to the previous notice requesting you pay this balance.”

Your Deadline

Pay by the due date shown on the notice.

What Happens If You Miss It

The IRS can file a federal tax lien, which damages business creditworthiness. Interest continues accruing and additional penalties may apply. The next notice in the sequence is typically CP503.

What To Do

Pay online or by mail, apply for a payment plan (Form 9465 or the online agreement tool), or request a Collection Appeals Program review before any collection action starts.

Source: IRS.gov — Understanding Your CP501 Notice

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