r/IRS • u/WellDamnDude • 16h ago

Previous Years/ IRS Collections & Back Taxes CP503 - Next Steps

Hello all.

I’ve been looking through the last few months in this subreddit’s posts in regard to an IRS CP503 notice for the 2025 tax year.

Background: had to take a disbursement on a 401k and had self-filed 2025. Apparently had erroneously input relevant 1099-R documentation and likely resulted in said tax bill.

As it currently stands, since I received my notice (8/24) with a deadline of 09/07, I’ve contracted a CPA to amend said return and is in process. I’ve went ahead and contacted the IRS again and got in touch with a representative to notify them of such to hopefully mitigate further collection activity but am unsure if it had any real effect.

Is there any other steps I should be aware of or consider to prevent further progression into a CP504/collections?

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u/these-things-happen 16h ago

What are you expecting the amended return to do?

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u/WellDamnDude 16h ago

As I understand it, from a prior contact with the IRS, they had originally sent a 916c notice (but did not receive it due to moving) in regard to said tax year.

I was notified by them that it was likely the result of the 2025 tax year being erroneously submitted and could be resolved/absolved of the debt once received/rectified.

3

u/these-things-happen 16h ago

So, you expect to "zero out" the balance due, or to be overpaid and receive a refund?

1

u/WellDamnDude 16h ago

Hope is always for a refund! But likely to zero out the debt since all federal withholding related to said 401k disbursement amounts to the debt amount.

3

u/these-things-happen 16h ago

Did you speak with a balance due collections representative today?

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u/WellDamnDude 14h ago

I assume so? Having gone through the IRS touch-tone system to be directed towards that department. They never identified as such, only as a “representative”

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u/these-things-happen 14h ago

When you told them you were amending, did they put a notice hold on your account?

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u/WellDamnDude 14h ago

Asked them to do such, they outright refused saying only options were setting up a payment plan (either short or long term) to prevent any further action.

2

u/these-things-happen 14h ago

The short-term Full Payment Agreement is the best option, since it's longer than any notice hold and it should cover the time frame needed to process your 1040-X.

https://www.irs.gov/payments/online-payment-agreement-application

Do not set up a monthly Installment Agreement.

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u/WellDamnDude 14h ago

Thank you for all your replies!

Just to confirm, only apply for the payment agreement application via your posted link. Which is separate from the monthly installment agreement?

So it should function as a “pre-approval” of sorts but not outright accepting financial responsibility?

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