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Home > Notices > Notice CP501
Published:   |   Last Updated: September 11, 2024

Notice CP501

1st Notice – Balance Due

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Overview

The Notice CP501 (also referred to as the 1st Notice) is mailed to you because there is a balance due (money you owe the IRS) on one of your tax accounts.

I need more information

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1.

What does this mean to me?

If you can’t pay the full amount by that date, you need to figure out what payment options might work for your situation, and act to set up a payment plan or discuss other ways to pay off your balance.

Being proactive in addressing the tax debt may prevent additional penalty and interest charges and eliminate the need for the IRS to take action to collect the balance. For specifics, see I got a notice from the IRS.

If you choose not to respond to the Notice CP501, the IRS may send further taxpayer collection notices to you requesting payment for the tax balance owing. The IRS may also file a Notice of Federal Tax Lien or issue a levy.

For specifics on your notice, visit Understanding your IRS Notice or Letter.

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2.

How did I get here?

You have a balance due on your tax account. This notice is being sent to you to let you know how much you owe, when it is due, and how to pay.

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3.

Is it from the IRS?

The first thing to do is to check the return address to be sure it’s from the Internal Revenue Service and not another agency.

If it’s from the IRS, you should read the notice carefully. It explains how much you owe, when your payment is due, and your payment options. The notice will have instructions on how to respond to the notice received and who to contact.

If it’s from another agency, such as a state tax department, you’ll need to call that office for an explanation.

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4.

If you disagree

If you disagree with the notice, call the IRS at the toll-free number on the top right corner of your notice. Please have your paperwork (such as cancelled checks, amended return, etc.) ready when you call. See also Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don’t Agree.

If you believe you have an acceptable reason for interest or a penalty to be removed or reduced, you may complete Form 843, Claim for Refund and Request for Abatement, or send a signed statement to the IRS explaining your reason why. For specific instructions, see Notice 746, Information About Your Notice, Penalty and Interest.

View Notice Online:

View your federal tax records and manage your communication preferences online

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  • Go paperless for certain notices
  • Get email notifications for new notices

Where can I get additional help?

Topic No. 653

IRS Notices and Bills, Penalties, and Interest Charges 

Read More

General Resources

Understanding your notice or letter

Get Help topics

Browse common tax issues and situations at TAS Get Help

If you still need help

The Taxpayer Advocate Service is an independent organization within the IRS. TAS helps taxpayers resolve problems with the IRS, makes administrative and legislative recommendations to prevent or correct the problems, and protects taxpayer rights. TAS helps all taxpayers (and their representatives), including individuals, businesses, and exempt organizations. You may be eligible for free TAS help if your IRS problem is causing financial difficulty, if you’ve tried and been unable to resolve your issue with the IRS, or if you believe an IRS system, process, or procedure just isn’t working as it should.

TAS has offices in every state, the District of Columbia, and Puerto Rico. To find your local advocate’s number:

Low Income Taxpayer Clinics (LITCs) assist individuals whose income is below a certain level who need to resolve tax problems with the IRS. They also provide education, outreach, and information on taxpayer rights to individuals who speak English as a second language. LITCs represent taxpayers in disputes before the IRS and courts and help taxpayers respond to IRS notices and correct account problems. Services are offered for free or a small fee. LITCs are independent from the IRS and TAS. For more information or to find an LITC near you, see the LITC Page or Publication 4134, Low Income Taxpayer Clinic List. You can also request Pub. 4134 by calling 800-TAX-FORM (800-829-3676).

View our Interactive Tax Map

Let us help you navigate your way through the IRS. Visit our interactive tax map to see where you are in the tax process.

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