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 CP503: What It Is and What You Should Do

IRS Notices

08.20.2025

If you have received IRS Letter CP503, it is a clear indication that the IRS has not received payment for an outstanding balance on your tax account. This is not the first attempt by the IRS to contact you. Typically, this letter follows an earlier notice (such as CP501), and its issuance reflects the IRS’s increased urgency in collecting a past-due amount.

It is important to understand that the CP503 is not merely a reminder — it is a formal warning. Continued inaction may result in enforced collection actions, including federal tax liens or levies.

What Is IRS Letter CP503?

Letter CP503 is the IRS’s second written notice to a taxpayer regarding an unpaid tax balance. It is part of the IRS’s automated collection process. The letter informs the taxpayer that:

    • A balance remains unpaid.
    • The IRS has not received a response or payment to prior correspondence.
    • The taxpayer must take action to avoid further collection activity.

The CP503 includes the amount due, applicable penalties and interest, payment options, and a response deadline.

Why Did You Receive It?

There are several common reasons for receiving a CP503 notice:

    • Failure to pay the balance due reported on a filed return.
    • Failure to respond to Letter CP501.
    • The taxpayer did not contact the IRS to arrange a payment plan or dispute the liability.

What Happens If You Ignore It?

Failing to respond to CP503 may result in increased enforcement measures. These may include:

    • Federal Tax Lien: The IRS may file a public notice asserting a legal claim to your property.
    • Levy Actions: This may include wage garnishment or seizure of funds in bank accounts.
    • Continued Accrual of Penalties and Interest: The longer the balance remains unpaid, the greater the financial burden.

While CP503 is not the final warning, it is the last step before Letter CP504, which notifies the taxpayer of intent to levy.

What Are Your Options?

Taxpayers receiving CP503 have multiple paths to compliance.

Full Payment

You may pay the full amount owed using the IRS’s online payment portal, by mail, or by phone.

Installment Agreement (IA)

If full payment is not feasible, you can request a monthly payment plan. This allows you to avoid further collection actions while gradually resolving the debt.

Offer in Compromise (OIC)

If paying the full amount creates significant financial hardship, you may apply for a settlement for less than the full amount owed. This is subject to IRS eligibility criteria and requires full financial disclosure.

Dispute the Balance

If you believe the amount is incorrect, you may contact the IRS or submit documentation to challenge the liability. It is advisable to act quickly and maintain a record of all communications.

Seek Professional Representation

A qualified tax attorney, CPA, or Enrolled Agent can assist you in responding to CP503, negotiating with the IRS, and protecting your rights throughout the process.

Relevance to Taxpayers

Receiving IRS Letter CP503 signifies that your tax matter is escalating. The longer you delay a response, the fewer options you will have available. This letter serves as a critical juncture in the IRS collection process. Timely and informed action may prevent the IRS from initiating liens, levies, or other adverse consequences.

We Can Help!

For individuals and businesses alike, addressing Letter CP503 proactively — whether by paying, negotiating, or disputing the amount — is not only a legal obligation but also the best way to avoid increased financial and legal exposure.

At JH Tax Law, our team can help make a substantial difference in resolving your case favorably and efficiently. If you are unsure how to proceed after receiving a CP503, contact our office for a confidential consultation today.