A CP504 notice is a serious wake-up call, and some taxpayers understand the seriousness of the situation only when they learn that the IRS will soon begin levying their assets and taking their property. However, this is not an eventuality; there are ways to enter the IRS’s good graces again.
Property at Risk After a CP504 Notice
Once the IRS runs out of patience—having sent CP501 and CP503 notices before the most recent CP504—they have the authority to seize various personal and business assets to settle unpaid tax debts associated with your accounts. This often includes:
- Real estate, including your home or business venue
- Bank accounts
- Vehicles
- Wages and retirement accounts
If you continue to ignore the IRS and let things escalate, they will likely move to seize some or all of these assets. The only way to fix the issue is to contact the IRS and negotiate an agreement.
Is It Too Late to Stop the IRS?
While a CP504 notice means that enforcement is getting close, it’s never too late to repay tax debts and stop the IRS from taking property to compensate for what they are owed.
Even if the IRS has already started levying assets or accounts, you must contact them. They will never punish you for reaching out, especially after how much effort they put into contacting you. They would rather enter into a repayment plan than deal with levies or federal liens. The quicker you address your tax situation, the better chance you have at keeping all your current assets out of the hands of the IRS.
When possible, it’s still preferred to engage with the IRS and pay your debts, either in whole or through a payment plan, before they begin seizing property.
The team at Highland Tax Resolution will help you find the best tax resolution plan before it’s too late, keeping your valuable property and assets in your control.