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Received 3 CP503 regarding a Fee I purportedly owe

I have completed my taxes with turbo tax for longer than I can remember.  This years (2020) went well until may when I received a CP503 notices for a $25 fee the IRS feels I owe on my taxes form last year.  I tried calling, worked through the automated system and was on hold waiting for over 3 hours when the line suddenly dropped.  I tried to call the next day with the same result.

 

After the second noticed arrived that tacked on 6 cents of P&I, I filed a Form 843 requesting an abatement of the fee, sent it registered mail and have the receipt confirmation. That was 45 days ago and I have receive no response

 

Today I have received a third notice that says if I don't pay the now $25.13 they will seize my income or bank account.

 

Again I tried to call, this time the final message is: "We cannot handle your call at this time, please try again on the next business day".

 

I guess the new operating procedures of the IRS is charge a fee, ignore the phones and disputes, then collect the fee forcibly?

 

Yes, I did try to get in to my online account, but in verifying it my cellphone number (20 years old) was not a valid number to verify my identity.   

 

Any thoughts?

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3 Replies

Received 3 CP503 regarding a Fee I purportedly owe

First for the IRS account sign up ... you do have the option to get a code mailed to you to complete the process ... do so asap.

 

 

Generally, the agency issues a CP501 notice first, then a CP502 notice if no action is taken. The next step is sending a CP503 notice, which includes a due date and a short payment window in which taxpayers can repay their tax balance. It's important that individuals who are behind in their taxes learn exactly what a CP503 notice is so that they can take the necessary steps to clear up their account quickly. 

What is a CP503 Notice?

A CP503 notice basically serves as written document stating exactly how much money a taxpayer owes and issuing a due date by which the IRS expects to receive it. This notice is only issued after two other notices have been sent but the taxpayer has not contacted the agency about repayment.

 

 

The notice includes the current amount due to the IRS, which is a total of the original balance, plus any penalties and interest. A taxpayer who receives a CP503 notice should pay particular attention to the due date, which is generally 10 days after the receipt of the notice.

How to Respond to a CP503 Notice

The best thing to do when you receive a CP503 notice is to pay the balance immediately. If you do not have enough money to pay the full balance, you can establish a free tax payment plan that allows you to submit a portion of your balance due each month. Should you decide to institute a payment plan, you need to contact the agency quickly. You'll only have 10 days after the receipt of the letter before the IRS adds even more penalties and interest charges to your balance.

 

The absolute worst thing you can do when you get a CP503 notice is to ignore it. If you take no action, the IRS will issue a CP504 notice, which is the final written notice that the agency is required to send you before beginning the process of imposing a tax levy.

What If You Disagree with the IRS Ruling?

If you believe that the IRS has made an error in your case or that your tax return has been incorrectly filed, you can use the contact phone number listed on the notice to file an appeal. Since you may be required to submit written proof of your situation, get your pertinent tax documents and receipts together in case you need to send a copy of them to the agency. 

 

If you cannot get thru on the phone the mail in a written response ASAP. 

Received 3 CP503 regarding a Fee I purportedly owe

So yes I did write to the 45 days ago and I have not had a response nor can contact them on the phone.

I am out of ideas other than buckle under to their strong arm tactics and pay a fine that  I don’t believe  I owe.  

Received 3 CP503 regarding a Fee I purportedly owe

just an FYI. the IRS is probably 3 to 6 months behind in processing mailed-in items.   you could pay and then file form 843 Claim for Refund and Request for Abatement or just wait to see what the IRS does. if they have your bank account number I would expect it to seize the money upon the expiration of the time period in the notice. you could then file form 843 or wait to see if it finally responds to your letter and agrees you don't owe the fee and makes a refund if it was paid.  be glad it's only $25.  

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