The IRS has recently began sending out a barrage of CP504 Notices to Taxpayers with tax debt. It is typically sent by Certified Mail and states Notice of Intent to seize (levy) your property or rights to property. It’s an important notice for several reasons that I’ll outline below:
- The IRS has now sent you several notices for a tax amount and you have not resolved it satisfactorily.
- The IRS can file a Federal Tax Lien against your current and future assets.
- This notice allows the IRS to levy your state tax refund if applicable to you.
- In 5 weeks, the IRS may send to you a Final Notice of Intent to Levy. This notice allows them to levy your bank account, garnish your wages, and potentially seize other assets.
While the IRS may be sending a Final Notice of Intent to Levy, it may or may not happen at this time due to COVID. However, the IRS does have that right and you may receive it at any time in the future.
What Should You Do If You Receive the CP504 Notice?
You should respond to the IRS to avoid escalating the problem including having a Notice of Federal Tax Lien filed and finding your bank account emptied or your employer receives a notice to garnish your paycheck. Your options to resolve the tax debt include:
- Setting up a Payment Plan,
- Filing an Offers-In-Compromise where you settle with the IRS for less than the full amount of the debt if you qualify,
- Obtaining Currently Uncollectable Status if you qualify, and
- Bankruptcy if the debt can be discharged through bankruptcy.
While anyone can work with the IRS with these solutions, it is often helpful to work with a Tax Resolution Specialist to find the best solution available to you with your unique circumstances and to assure that you are invoking all of your rights as a taxpayer.
Do you Need Help?
If you need help with any issue related to IRS tax debt, we can help you. Please give me a call at (972) 821-1991 or at [email protected]. To learn more about us, visit our website at https://jablonskyandassociates.com/.