A CP504 notice means the IRS is getting closer to levying your assets. There will be no more warnings; without payment, nothing will stop the IRS from going after bank accounts and tax refunds.
That being said, you may be unable to pay your unpaid balance on short notice. How can you avoid a levy after a CP504 notice arrives in the mail?
Avoiding An IRS Levy
There aren’t many ways to prevent the IRS from levying your accounts and assets without addressing the elephant in the room: an unpaid tax balance. However, how you get to that point can vary, and the immediate steps you take to reach an agreement with the IRS will impact your repayment journey.
Respond Immediately
Ignoring a CP504 notice won’t make it go away, and the last thing you should do is let this final notice go unanswered. Even if this tax balance is a mistake, you must contact the IRS as soon as possible to clear up any issues associated with your account. Contact Highland Tax Resolution and let our experts help you through the matter.
Pay The Full Amount
Paying your outstanding taxes is the simplest way to eliminate IRS concerns related to your CP504. While this may not be feasible for every taxpayer, it gives the IRS what they want and will get them out of your hair.
Set Up A Payment Plan
If full payment isn’t possible, you can create a payment plan to reduce your tax balance over time. This won’t eliminate interest and existing penalties, but it will prevent the IRS from levying assets and accounts due to non-compliance.
Alternative Resolutions
You can avoid repaying your entire balance in two primary situations: when much of your tax debt involves penalties and when there is no feasible way to pay off the debt. Typically, these relief options require you to show the IRS significant evidence of financial hardship.
Highland Tax Resolution wants to help you resolve your tax debt after a CP504 notice, whatever form that resolution takes. After hearing more about your existing debt, current financial situation, and ongoing levies, our experts can recommend the best action plan.