Make sure your fax transport support is set correctly on your SIP line under VoIP (I use T38 Fallback). Some SIP trunking providers don't support T38 so you might need to confirm with your provider.
You'll also need an analogue phone port in the 500V2, and that should be set to be a fax machine:
RSV23, just FYI incoming faxes with SIP should typically work fine, but more and more I come across some outbound fax machines, which when we try to send to them, they just won't accept faxes from our clients on sip lines. I advise my clients to get an email address to use instead when possible. As ipohead said, the future of faxing is short term.
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