If you’ve received IRS Notice CP 504, you’re entering a critical phase of tax collection. This notice is a “Final Notice of Intent to Levy,” meaning the IRS plans to levy your state tax refund and may take further actions such as wage garnishment or property seizure if the tax debt is not addressed. CP 504 follows prior notices, signaling the IRS’s intent to escalate collection actions, making it essential to respond immediately.
What Exactly is IRS Notice CP 504?
The CP 504 notice is issued when the IRS has not received payment for your outstanding tax debt despite earlier reminders. This is essentially the IRS’s last warning before more aggressive actions are taken. While the immediate focus is on levying your state tax refund, the IRS may seize other assets or garnish wages if you do not resolve the situation promptly. Alongside this, additional penalties and interest continue to accrue, increasing your total balance owed.
How Should You Respond?
Pay in Full: The quickest way to halt further IRS action is to pay the full amount due. The notice includes payment instructions.
- Set Up a Payment Plan: If paying the full amount isn’t feasible, our firm can help you negotiate a payment plan or installment agreement with the IRS to prevent levies or garnishments.
- Challenge the Notice: If you believe the debt is incorrect, you can dispute the notice. We can assist you with filing an appeal and presenting the necessary documentation to the IRS.
- Seek Professional Assistance: Our firm specializes in helping clients resolve tax issues like those presented in Notice CP 504. We can provide solutions tailored to your situation, whether it’s arranging a settlement or stopping IRS enforcement actions before they escalate.
Potential Consequences of Ignoring CP 504
If you ignore Notice CP 504, the IRS will escalate its collection efforts, leading to:
- State Tax Refund Levy: Your state tax refund will be intercepted and applied toward your debt.
- Federal Tax Levy: Further ignoring the IRS could result in the seizure of your federal tax refunds, wages, bank accounts, or other property.
- Wage Garnishment: The IRS can notify your employer to garnish a portion of your wages to satisfy your tax debt.
- Asset Seizure: The IRS may seize assets like vehicles or real estate to cover your outstanding debt.
Can You Still Stop IRS Collection Actions?
Yes, but immediate action is critical. The notice provides a short window for you to respond before collection activities begin. By addressing the notice, whether by paying the debt, setting up a payment plan, or disputing the debt, the IRS will temporarily halt enforcement actions. Our firm can help you navigate this process, ensuring that collection actions like levies and garnishments do not proceed.
Why Our Firm Can Help
At our firm, we specialize in tax resolution services and can assist you in:
- Stopping levies and garnishments by negotiating with the IRS on your behalf.
- Setting up an installment agreement or Offer in Compromise (settling your tax debt for less than the full amount owed).
- Assisting with penalty abatements to reduce interest or penalties.
- Filing appeals if you believe the tax liability is incorrect.
We have extensive experience working with the IRS and can help you resolve your tax debt while protecting your assets and rights.
Conclusion
Receiving an IRS Notice CP 504 is serious, but you have options. Ignoring the notice can lead to wage garnishments, asset seizures, and other drastic measures. If you’re unsure how to proceed, our firm is here to help. We can work with you to resolve the issue and prevent further collection actions.
Contact us today to get expert guidance in resolving your tax issues and stopping IRS enforcement actions.