Federal · Internal Revenue Service
Balance due and the collection notice sequence
CP14 · CP501 · CP503 · CP504 · CP71
- What it is
- CP14 is the first bill after a return is processed with tax unpaid. CP501 and CP503 are reminders. CP504 is a notice of intent to levy a state tax refund and the last notice before the final notice that carries hearing rights. CP71 is the annual statement of a balance still owed. Interest and the failure-to-pay addition accrue through the sequence.
- The clock it starts
- Pay by the date on the notice, generally 21 days from a CP14, to stop the failure-to-pay addition from stepping up. A CP504 allows 30 days before a state refund may be taken. Installment agreements can be requested at any point.
- What a response has to establish
- Verification that the balance is right (payments and credits posted), an installment agreement or other alternative if it is, and a penalty-abatement request where the failure-to-pay addition qualifies for relief.
- Authority
- IRC §6303
- IRC §6331
- IRC §6651
- IRC §6159
- Treas. Reg. §301.6159-1
- IRS Publication 594
What CitedTax drafts for this notice
A first-time abatement or reasonable-cause request on the failure-to-pay addition, or a letter proposing the installment agreement with the authority for it.
One credit. Upload the notice, state the firm's position and the facts, and the draft comes back in about thirty minutes with every claim graded against the cited text.
Other federal notices
For tax professionals. The date printed on the notice controls. CitedTax is a research and drafting tool; the reviewing professional validates every item before reliance.