01. International Tax

We provide tailored solutions to complex global businesses doing business in the U.S. Small or multinational, we guide clients through the maze of complex U.S. international tax rules.

02. Offshore Tax Compliance

We assist clients with specialized counsel to fix noncompliance with international tax reporting and penalties. FBAR, forms 8938, 8621, 3520, 926, 5471 and 5472 are among the most common forms that we solve through compliance programs such as streamlined procedures, Voluntary Disclosure Program or the Delinquent International Information Return Submission Procedures (DIIR).

03. Small Business Tax Planning

We assist small and medium businesses with efficient tax structuring to improve efficiencies. Proper tax election, s-corp elections and partnership planning are some of the main solutions offered.

04. Controversy Tax

We guide and represent clients before the IRS including examinations and appeals, as well as represent clients in Tax Court or Federal Courts.

05. Tax Debt Resolution

We help clients to face harsh collection activities, including liens, levies and obtaining a collection alternative such as an offer in compromise, installment payment plans, among others.

06. IRS Criminal Investigations

Our Firm provides representation before IRS Criminal Investigation Division, including Malta Pension Plans and summons.

07. High Net Worth & Family Offices

Assistance with estate planning for select clients and those with cross-border operations, planning for inheritance taxes, and gift taxes in the USA.

08. Start-Ups & Business Tax

No matter how small the idea, we assist clients with the best tax planning and alternatives for their business.

09. Crypto Tax

Our Firm provides tax planning and tax advice on crypto assets and crypto events, including mining, forks, rewards, and disposition/exchange of crypto.

10. BOI Report- Corporate Transparency Act

We assist business owners, CPA and tax preparation firms to file the Beneficial Ownership Information (BOI) report with the FinCEN.

IRS Letter CP501: What It Is and What You Should Do

IRS Notices

08.20.2025

Receiving a letter from the IRS is rarely a welcome experience, and Letter CP501 is no exception. Officially titled “Notice of Balance Due”, CP501 informs you that you owe taxes to the Internal Revenue Service. Whether you are a U.S. citizen residing abroad, a foreign national with U.S. source income, or simply an international taxpayer with complex financial ties to the U.S., understanding this notice—and acting swiftly—is essential to protecting your financial stability.

What is Letter CP501?

IRS Letter CP501 notifies a taxpayer of a balance due on their tax account. It is typically the first of several increasingly urgent collection notices. The letter serves as a formal reminder that the IRS expects payment by a specific date and outlines how much is owed in taxes, interest, and potential penalties

Who Can Receive It?

Anyone with a tax liability to the IRS can receive CP501. This includes:

    • U.S. citizens and residents,
    • Nonresident aliens with U.S. income,
    • Individuals with unresolved audits or amended returns, and
    • International taxpayers who may have underpaid or misreported income.

If you live outside the U.S., you may face additional complications such as foreign currency exchange issues, delayed mail delivery, or difficulties accessing IRS communication channels.

What Information Does It Contain?

The letter includes:

    • The amount due,
    • The due date for payment,
    • Instructions for how to pay online or by mail,
    • Options for payment plans (e.g., Form 9465 for installment agreements),
    • A notice that interest and penalties will accrue until full payment is made,
    • A warning that continued noncompliance could trigger a federal tax lien

What Happens If I Do Nothing?

Ignoring the CP501 notice is a mistake that could escalate quickly. If you take no action, the IRS may file a Notice of Federal Tax Lien against your property, you may face increased penalties and interest, your credit score can be negatively affected, and ultimately, the IRS could initiate levy actions against your bank accounts or wages.

What Should I Do?

    1. Read the Letter Carefully: Understand the exact amount due and the deadline.
    2. Verify the Information: If you disagree with the IRS or suspect an error, contact them using the number provided in the notice.
    3. Pay the Amount: If possible, pay in full by the due date to stop additional charges.
    4. Explore Payment Plans: If full payment isn’t feasible, apply for an installment agreement using Form 9465 or through the IRS website.
    5. Consult a Tax Attorney: Especially for international taxpayers, proper legal guidance is critical to avoid long-term consequences.

Relevance for Taxpayers

CP501 is not just a routine notice—it is a potential precursor to aggressive IRS collection actions. International taxpayers, in particular, face higher compliance burdens due to cross-border financial reporting, currency conversions, and residency considerations. Immediate and informed action can preserve your rights and prevent escalation.

We Can Help!

For taxpayers—especially those with international ties or complex financial situations—navigating a CP501 notice alone can be risky. Contact our office to schedule a confidential consultation today.