CP 504 problems?
In this article, we will answer 3 fundamental questions:
- What is a CP504?
- What does the IRS CP 504 notice mean?
- What can I do if I get the IRS final notice call?
Receiving an IRS CP 504 notice can be pretty scary and you may have been pondering on the questions above. What you need is to be enlightened with the right knowledge about the IRS’s notice of intent to levy, and we’re about to do that for you.
The CP504 is the IRS’s final notice call to a person, letting them know that they are yet to pay their balance. This notice is also called the final notice.
It is called the final notice because it is the final time the IRS will inform you about your unpaid balance, how much you owe, and your additional penalties and interests. The IRS final notice call or Cp504 comes with instructions, letting you know when and how you should pay.
Failure to respond appropriately to the IRS CP 504 notice will attract collection actions against you.
If you do not respond within 30 days from the day you receive the IRS levy notice, your state tax and refund can be levied by the IRS.
The IRS CP 504 is also a final notice of intent to levy. In some cases, the IRS will send a notice ahead, before they issue a levy on your property or rights to property. This notice grants you the avenue to request a Collection Due Process (CDP) hearing if you haven’t already received one.
Apart from serving a final notice, other things the IRS can do include serving a disqualified employment tax levy or a Federal Contractor Levy, as explained in the enclosed Publication 594, The IRS Collection Process.
As we mentioned earlier, the notice of intent to levy comes along with information on how you can pay the balance. You are provided with different options and are at liberty to make a decision. You can choose to pay CP504 online via IRS.gov or via check or money order payable to the United States Treasury.
Payment options are also available for people who can not pay the full balance before the deadline outlined on the notice of intent to levy. We can help you look into your situation and figure out what payment options will work best for you. We can set up a payment plan or work out tax relief solutions with the IRS to pay off your balance.
It is better to be proactive when it comes to matters of taxes like the IRS CP 504 notice. Failure to attend to such a notice will lead to a levy or seizure of your wages, earned income, bank accounts, business assets, personal assets (including your car and home), retirement accounts (including your Thrift Savings Plan), Social Security benefits, and more, until it sums up to the amount you owe.
What does intent to levy mean for you when you have gotten a notice?
If you have received an IRS intent to levy letter, you just might be asking “what does intent to levy mean for me and my income?”. It is an IRS final notice call meaning that the IRS intends to seize your assets because of your debts to them.
The IRS is not allowed to take your property without sending you notice first. The IRS intent to levy letter is sent to you if you have seriously delinquent tax debts that you’re doing nothing about.
A notice of intent to levy comes with sufficient information about the period for which you owe the taxes, and each tax they intend to collect by seizing your property.
What can the IRS Levy?
Some of the properties the IRS can seize include; personal properties like cars, and homes, funds in bank accounts, rights to property, social Security benefits, wages from your employer, retirement benefits, commissions, contractor or vendor payments due to you, employee travel advances, and government retirement benefits from the Office of Personnel Management (OPM).
How does the IRS Levy?
Legally, unless in exceptional cases like state tax refunds, cases where the IRS feels the collection of tax is in jeopardy, Disqualified Employment Tax Levies (DETL), or federal contractor levies, the IRS levy notice must be sent at least 30 days before they can seize an individual’s assets. The IRS must take some steps.
These steps include:
- Providing you a written notice of the intent to levy and explaining your right to appeal it to you.
- Delivering the notice personally or sending it to your legally known address via registered mail.
- Including an explanation of the reason for the levy, the seizure process, and the options available to you henceforth.
If you do not agree with an IRS levy notice, or you want to dispute the information on the IRS intent to levy letter you have received, you are allowed to file an appeal. You can start by calling the number on the notice.
Take note that you want to take action as soon as possible, seeing you have just 30 days before the IRS makes a move.