What Is an IRS CP503 Notice?

Q: Can I ignore a CP503?

No. Ignoring a CP503 leads to a CP504, which carries levy intent and potential lien filings.

Q: Can I set up a payment plan after a CP503?

Yes. At the CP503 stage you still have broad options, including payment plans. Acting early avoids escalation to levy notices.

IRS Notices Explained
Written by Enrolled Agent
Reviewed by Enrolled Agent

The CP503 is the IRS’s second reminder that you still owe a tax balance. It follows the CP501 and warns that more serious collection actions are coming if you don’t resolve the debt. Here’s what it means and how to act before escalation.

Quick Answer

An IRS CP503 is a second reminder that your tax balance remains unpaid. It provides the updated amount due (including interest and penalties) and urges immediate payment or contact. It’s one step closer to enforced collections if ignored.

Note: The CP503 itself doesn’t authorize levies, but it’s the last reminder before the IRS escalates to CP504 — which signals intent to levy and lien filings.

Why You Received a CP503

You received earlier notices (CP14 and CP501) but did not resolve the balance.
Interest and penalties continue to accrue on unpaid tax.
The IRS is signaling that collection will escalate without action.

The CP503 is part of the IRS’s escalating notice sequence before more aggressive action. It is not optional and should not be ignored.

What the CP503 Means

The CP503 provides a summary of your tax balance and urges action. It includes:

Total balance due, with penalties and interest updated.
Payment options (check, online, installment arrangements).
A payment deadline printed on the notice.

While it does not yet carry levy authority, it sets the stage for CP504 and ultimately LT11, which do.

What to Do Next

If you agree with the balance, pay it in full or set up a payment plan before deadlines pass. If you can’t pay in full, explore relief options. If you disagree, contact the IRS or seek representation to resolve errors. Your options include:

Full payment — clears the debt and stops collection notices.
Installment Agreement — affordable monthly payments that stop further escalation.
Currently Not Collectible (CNC) — if you can’t pay now without hardship.
Offer in Compromise — a potential settlement for less than owed if you qualify.
Penalty relief — request reduction of certain penalties where eligible.

See the bigger picture: Our Complete Guide to Back Taxes in the U.S. explains how IRS collections escalate and how to resolve them at every stage.

If You Ignore the CP503

Ignoring the CP503 triggers escalation to a CP504 notice. At that stage, the IRS warns of levy against state refunds and lien filings. Continued inaction eventually results in LT11/Letter 1058, the Final Notice of Intent to Levy, which carries full levy authority.

Each step you ignore reduces your options. Acting now is far easier and less costly than waiting for enforcement.

How Polaris Can Help

Polaris Tax & Accounting helps clients nationwide resolve IRS balances before enforcement begins. Our Enrolled Agents confirm the balance, review transcripts, and design the right resolution — whether a payment plan, hardship relief, or penalty abatement.

We communicate directly with the IRS on your behalf so you can focus on running your business and life, not battling IRS collections.

Your Next Step: Prevent escalation to CP504 and LT11. Schedule a consultation today.

Related Resources

FAQs

Is a CP503 more serious than a CP501?

Yes. A CP503 is the second reminder, showing the IRS is escalating its efforts. It’s still not a levy notice, but it’s closer to one.

Can I ignore a CP503?

You shouldn’t. Ignoring it leads to CP504, which carries levy intent and possible lien filings.

Can I set up a payment plan after a CP503?

Yes. You still have broad options, including payment plans, at the CP503 stage. It’s better to act now than to wait until later notices reduce flexibility.