Over the last few months, as the country has begun opening up and the IRS has gotten back to full staffing, the government has transitioned back to full collections. What this means is that taxpayers are receiving collection notices with threatening language. Today, we’re going to cover the CP504 notice. This is an important notice in that the government is able to take certain actions after sending this notice.
When Do I get the CP504 Notice?
There are a variety of notices that are sent out by IRS collections when a taxpayer owes money to the government. These include a CP14 which legally notifies the taxpayer of the amount owed to the government. This is typically followed by a CP501, CP503 and then a CP504. While the time can vary in between the government sending these notices, typically there are 30 to 60 days in between each notice being generated.
What is the Purpose of the CP504?
The CP504 notice serves several purposes for the government:
- If a taxpayer does not take action within 30 days, the government can levy any state tax refunds due.
- If a taxpayer does not take action within 30 days, the government can file a Notice of Federal Tax Lien against the taxpayer. This is a very powerful tool of the government as it it is a public notice to creditors that the IRS has a right to your interests in both current and future assets acquired. While it does not impact your credit score, it can impact your ability to get credit.
- It also explains the rules and regulations around who is considered to be seriously delinquent and a US passport denied or revoked.
What can you do if you receive the Form CP504?
You should contact the IRS to resolve your tax issue. There are variety of resolutions including payments plans, settlements, penalty abatement and considered to be currently not collectible. Your solution depends on your unique circumstances. If you don’t respond, in approximately 45 days, you will most likely receive a Final Notice of Intent to Levy. This noticeallows the IRS to seize assets and garnish your paycheck. I’ll cover this notice next month.
Do You Need Help?
If you owe the IRS and are looking for a tax professional to assist you in finding a reasonable and fair solutions to you tax debt, give me a call at (972) 821-1991 or send me an email at [email protected]. Learn more about us at https://jablonskyandassociates.com
