What is a CP504?
The CP504 is a statutory notice that warns the taxpayer that the IRS intends to levy them. It’s a legal requirement that the IRS sends this letter 30 days before a levy action. It’s typically sent via a certified letter.
If the IRS levies you and you didn’t receive a CP504, you can contest the levy as unlawful. However, the notices are sent to a taxpayer’s last known address. So, often when someone believes a levy came out of nowhere, it’s because they’re no longer living at the address the IRS has on file for them. If they sent it, they still followed their legal obligation and you can’t contest the levy.
The CP504 states what it is — a notice of intent to seize (levy) your property or rights to property. It will show you the time period that it has assessed a debt, how much they believe you owe, and any penalties and interest that have accrued. Then it will tell you what it wants you to do, which is pay the tax debt listed on the CP504 immediately.
The notice of intent to levy goes on to describe what the IRS can do to collect on that debt if you do not pay it within 30 days of the date on the CP504, mainly place a lien on you or levy your property.
At the bottom of the CP504, it gives information on various ways you can pay. It describes ways to make electronic payments, the option of signing up for a payment plan, and how you can settle your tax debt for less than the full amount with an Offer in Compromise.
What is the CP504 warning you?
The IRS intends to seize your property or rights to property, which includes:
- Wages, real estate commissions, and other income
- Bank accounts
- Personal assets (such as your car or home)
- Social Security benefits
A seriously delinquent tax debt could also mean that your United States passport could be denied or revoked.
What should you do if you receive a CP504?
A CP504 is a serious notice to receive. The IRS is planning on taking your money any way they can and you don’t have much time to prevent it.
If you can pay the full tax liability immediately, that’s your best option. However, for many taxpayers, that isn’t possible. In that case, reaching an agreement with the IRS for a payment plan or a settlement would be your best bet. If you owe more than $10,000, we recommend that you hire a licensed tax professional to make sure you reach the best possible agreement with the IRS for your particular tax situation.
If you have received a CP504, we can help you. Justice Tax, LLC specializes in resolving taxpayer’s tax issues, including IRS and state levies, garnishments, unfiled tax returns, and more. By calling us at 888-545-6007, we can provide you with a completely free, no-obligation consultation to go over your tax concerns with you and help you achieve freedom from your tax situation.
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