If you’ve received a CP504 Notice from the IRS, it will most likely look very scary to you. It is typically sent by Certified Mail and states Notice of Intent to seize (levy) your property or rights to property. While it is important to respond to this notice (this means the IRS has already sent several earlier notices to you and you are getting close to getting a Final Notice of Intent to Levy), if you read underneath that threat and under the amount due, it further states that This is a notice of intent to levy your state tax refund or other property. While still important to many taxpayers, it is much less menacing. In order to begin levy of your bank account and garnishment of payroll, the IRS will send you a final Notice (typically LT 11) and you will have 30 days to respond to that notice.
So Why Should You Care About the CP504 Notice?
- You have a tax balance that was not paid by the due date.
- The IRS has now sent you several notices and it has now escalated to being received via Certified Letter.
- The is information you of their intent to levy your state tax refund if you get a refund.
- In addition, the IRS may file a Notice of Federal Tax Lien against your assets, including your property, which can be a critical event. Keep in mind that once a lien is filed against your property, it becomes much more difficult to remove it, than to have avoided having one filed.
What Should You Do If You Receive the CP504 Notice?
The notice states that you have 30 Days to respond to the IRS. I would advise you to respond promptly to avoid a tax lien and avoid future action. You can respond to the IRS either by phone or mail. As noted above, typically the next notice will be the Final Notice of Intent to Levy, after which the IRS may begin to levy your bank account, wages, and other assets. As with all tax debts, your options to resolve the tax debt include:
- Setting up a Payment Plan,
- Offers-In-Compromise allow settlement for less than the full amount,
- Currently Uncollectable Status, and
While anyone can work with the IRS with these solutions, it is often helpful to work with a Tax Resolution Specialist who can help you to find the best solution available to you and to assure that you are invoking all of your rights as a taxpayer. For example, this notice triggers your right to a CAP Hearing or Appeal, which is an important right for a Taxpayer under threat of a Tax Lien or Levy.
Do you Need Help?
If you need help in responding to an IRS Notice or any issue related to IRS tax debt, we can help you. Please give me a call at (972) 821-1991 or at email@example.com. To learn more about us, visit our website at https://jablonskyandassociates.com/.