What This Notice Means
The IRS hasn't heard from you, and your business still has an unpaid balance for its Employer Shared Responsibility Payment (ESRP). The CP503J is a reminder notice. It follows an earlier notice that went unanswered.
What to Do
- Review the notice for the amount owed, the due date, and payment options.
- Pay the full balance by the due date shown on the notice to avoid additional interest.
- If you can't pay in full, set up a payment plan.
- If you disagree, call the number on your notice.
What Happens If You Ignore It
If you don't pay, make payment arrangements, or call the IRS, you may receive a Notice of Federal Tax Lien, or the IRS may seize or levy your property. A tax lien is a public notice that the IRS has a claim on your property for unpaid taxes. It can damage your credit.
That is a real escalation for a business. Don't let it get there.
If You Already Paid or Have a Plan
Payments take time to post. If you recently paid in full, you can disregard the notice. Check your current balance and payment history in your IRS online account.
If you have an approved installment agreement, keep making the payments. If you applied but haven't been approved yet, pay as much as you can now to reduce interest.
If You Disagree
Call the number on your notice right away. Have your paperwork ready when you call, such as cancelled checks or an amended return. The ESRP rules are in sections 54.4980H-4 and 54.4980H-5 of the regulations, and the IRS publishes ESRP questions and answers.
Get your records in order before you call. Keep notes of who you spoke with and when, and keep a copy of the notice with your business records.
If your business received a CP503J and you need to stop collection or dispute the payment, call us at (813) 229-7100.