What This Notice Means

The CP503H is another reminder that you owe a balance on your Shared Responsibility Payment (SRP) account. The IRS sent it because it didn't receive your payment or a response to its earlier notice.

The SRP is the amount owed for not having minimum essential health coverage for yourself and members of your tax household, or qualifying for an exemption, under Internal Revenue Code section 5000A.

What to Do

Pay what you owe right away, and no later than the due date on the notice. If you can't pay in full:

  • Apply online for a payment plan.
  • See if you qualify for an Offer in Compromise.
  • Request a temporary collection delay if you're in financial hardship.

If You Disagree or Already Fixed It

Call the number on your notice if you have questions or disagree. If you already took corrective action, call anyway to make sure the IRS has a record of it and your account is right. If your return needs a correction, file Form 1040-X.

Interest Keeps Growing

The IRS must charge interest when you don't pay on time. Unlike penalties, interest can't be removed for reasonable cause. It's added daily. Pay by the due date or more interest will be added.

What the IRS Can and Can't Do Here

Penalties do not apply to the SRP. The law also prohibits the IRS from using liens or levies to collect an individual shared responsibility payment.

That doesn't mean the debt goes away. The IRS can take your tax refunds and apply them to the SRP balance. If you're counting on a refund, expect it to be applied to this balance until it's paid.

Bottom Line

This won't lead to a levy on your wages or bank account. But it will keep growing with interest and it will eat your refunds. Deal with it.

If you received a CP503H and have other IRS balances too, call us at (813) 229-7100.