Common IRS Notices and What They Mean
The IRS sends many different notices to taxpayers by mail.
These notices range from requests for more supporting documentation, notice of
underreported income, or taxes owed. Here are a few relating to debts owed.
CP161 – Notice of Unpaid Balance Due
A Notice of Unpaid Balance is sent when an unpaid balance has not been
resolved by the taxpayer. This is generally the first notice.
CP501/CP503 – Notice of Unpaid Balance
A Notice of Unpaid Balance is sent when an unpaid balance has not been
resolved by the taxpayer. These are generally not the first notice to a balance due that a
taxpayer is given.
CP504 – Notice of Intent to Levy
A Notice of Intent to Levy is sent when the taxpayer owes an unpaid debt to the
IRS. If no payment is received, or a disagreement as to the amount is filed
appropriately, the agency may then seize taxpayer property, income, bank accounts,
and/or future tax returns, both state and federal to apply towards the balance due.
A variety of methods exist to resolve tax debts. Installment payment plans, claiming
hardship status, or settling your debt for less than the full amount through an offer-in-
compromise may be a possibility if you meet certain strict requirements.
If you have received a notice from the IRS, contact a Low-Income Taxpayer Clinic for
assistance in resolving any disputed amounts.
Indiana Legal Services
Low-Income Taxpayer Clinic
214 S College Avenue
Bloomington, IN 47404
(812) 339-7668
IRS – The Collection Process
https://www.irs.gov/taxtopics/tc201#:~:text=The%20first%20notice%20you%20receive,date%20the%20tax%20was%20due.
Franklin Hunt-Gonzales,
Student Law Clerk