What is an IRS CP501 Notice?

The IRS CP501 is a Reminder Notice of Balance Due. It is sent when you owe unpaid taxes, penalties, or interest, and the IRS has not yet received your payment. The CP501 is usually the first reminder in the IRS’s collection process.

Why did I receive a CP501 notice?

You may receive a CP501 notice if:

• You filed a return (such as Form 940 or Form 941) but did not pay the full balance owed.

• Penalties or interest have accrued on a late or missing payment.

• The IRS’s records show a tax liability that has not been resolved.

The notice clearly states the amount due, the due date for payment, and instructions on how to respond.

What do I need to do?

When you receive a CP501, you must:

1. Review the balance due as listed on the notice.

2. Pay the amount in full by the due date to avoid further interest or penalties.

3. If you cannot pay in full, contact the IRS at 800-829-0922 to explore payment plan options.

If no action is taken, the IRS may send additional notices (like CP503 or CP504), and collection activity will escalate.

How TaxBandits helps with IRS CP501 notices

When you receive a CP501, the first step is to upload the notice into your TaxBandits account. This keeps it securely stored and allows you to access guidance on what the notice means and what steps to take next.

There’s no additional cost to upload or manage IRS notices in TaxBandits. We provide this service because staying compliant isn’t just about filing—it’s also about helping you respond effectively when the IRS reaches out.