What is an IRS CP503 notice?

A CP503 is a second, more urgent reminder that a balance is still unpaid and the IRS hasn't heard from you. It shows the same charges as before: the tax, the failure-to-pay penalty, and interest, now further along the collection path.

How long do I have to respond to a CP503?

Respond by the date printed on the notice. If it's ignored, the next step is a CP504, a notice of intent to levy.

Can the penalty on a CP503 be removed?

Often yes. The failure-to-pay penalty can be removed under First-Time Abate if your prior three years are clean, or under reasonable cause. The tax is separate and still has to be paid, put on a plan, or disputed if it's wrong.

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IRS Notice CP503: a second, more urgent reminder

Individual Balance due Second reminder

What it means

A CP503 is a second, more urgent reminder that a balance is still unpaid and the IRS hasn't heard from you. The charges are the same as before, the tax plus the failure-to-pay penalty and interest, but you're now further along the collection path. It's a nudge with more weight behind it, not a new kind of bill.

Your deadline

Respond by the date printed on the notice. The failure-to-pay penalty and interest keep accruing until the tax is paid. If the CP503 goes unanswered, the next step is a CP504, a notice of intent to levy, which is a serious escalation. Acting now is a lot easier than unwinding a levy later.

Can the penalty be removed?

Often, yes. The penalty, not the tax. The failure-to-pay penalty on a CP503 can usually come off one of two ways:

First-Time Abate (free): if you filed your returns and haven't had penalties in the prior three years, the IRS removes it, increasingly on its own under the new automatic relief program. A single phone call usually settles it.

Reasonable cause: if first-time relief doesn't fit, a serious event outside your control that overlapped the deadline (illness, a death, a disaster) can justify removal, in writing, with documents.

The tax itself isn't abated. You either pay it, set up a payment plan, or dispute it if the amount is wrong.

What to do now

Don't sit on it. The next notice moves toward a levy, so time matters more here than it did on earlier reminders.
If you can pay, pay by the date on the notice to stop the meter and end the reminders.
If you can't pay in full, set up a payment plan. That pauses most of the collection pressure.
Ask to have the penalty removed. That's separate from paying the tax.

See if your penalty is removable →

Common questions

How is a CP503 different from a CP501?

It's the next reminder in the same sequence. The CP501 comes first, and the CP503 follows when that balance is still unpaid. The tone is firmer and you're one step closer to a levy notice.

What comes after a CP503?

A CP504, the notice of intent to levy. That's when the IRS signals it can start seizing refunds and, later, other income and assets. Handling the CP503 keeps you out of that lane.

Does paying the tax remove the penalty?

No, those are separate. Paying stops new charges, but you still have to ask for the existing penalty to be removed.

This guide is general information, not tax or legal advice. PenaltyLetter is a document-preparation and mailing service and does not represent you before the IRS.