Received IRS CP501? Here’s What it Means and How to Respond

Patrick Waletr

Received an IRS CP501 notice? Learn what it means and how to respond effectively with help from the Law Offices of Nick Nemeth, experienced IRS tax attorneys ready to protect your rights. Watch: https://youtu.be/4wN00PSp7Xk

Transcript

00:00Hi everybody, Jamie Flores with the Law Offices of Nick Namath. I am an attorney licensed in

00:06the state of Texas. This is just for informational purposes only. So it is for federal IRS liability.

00:13If you receive notices, I'm going to go over a series of different notices. If you get a notice

00:20in the mail and you want to know what it is, what you need to do, you would go to these videos to

00:24try to find it. The first one is a CP501 notice. This is an actual notice and I've redacted the

00:31client's information. So this is how it will look when it comes in the mail to you. It's usually

00:36three or four pages and it comes in a sequence of notices. This is not going to be the first notice

00:42that you receive. The first notice is going to be, hey, you filed a return and you owe us money.

00:48This then would come after that. So again, a CP501, um, and then there's a 503, a 504.

00:56Um, and they, each one gets a little bit more aggressive in their language and their ability

01:02to collect against you. So this is what the collections department of the treasury and the

01:07IRS. It is just telling you, you filed a return, you owe a balance. It's due immediately. Okay.

01:14And how much is owed and how do you make your payments? You can go online and make a payment.

01:19You can, um, mail in a check. If you can sign a check, um, and write the, the social security number,

01:27the taxpayer's name and what year you want the payment to go to. Uh, and then the next page of

01:33these notices are going to be the taxpayer's rights. Yes, you have rights, but you also have to pay your

01:39taxes. So, but it gives you a list under the IRC of what rights you have. It's called the bill of

01:45rights for taxpayers. And that's for individuals and businesses. Um, but you can go in and, and see

01:52if there's something that you feel like, Hey, I really don't owe this amount. There's something

01:56wrong. Um, that's when you would want to do like audit reconsideration, or you have to formally tell

02:02the IRS that you don't owe it. Um, it also gives you the information for taxpayer advocate service.

02:09They are an independent organization that has nothing to do, um, with the IRS. So they are

02:17independent of the IRS, but they can come in and help answer questions and resolve IRS problems

02:23and correspond with the IRS to make sure that, that the IRS is abiding by all of their proper procedures,

02:29to protect your rights. And there's a list of low income taxpayer clinics that you can go to their

02:36link. Um, if you need help and assistance, you can go to that link, um, and see if somebody can help

02:41you, uh, with resolving your IRS liability. So again, a CP 501 is a balance due notice and, um,

02:48it's asking you to make payments, um, it's asking you to make payments.

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