No one can avoid taxes. No one. If the IRS can’t reach or get a response from a taxpayer with an unpaid balance, they provide a bit of grace, but they eventually lose their patience.
CP504 is a Notice of Intent to Levy. The IRS has ways of getting its money, with or without the taxpayer’s consent and involvement.
Reason For The Notice
The IRS sends CP504 notices to taxpayers who have not made payments to address unpaid balances. If you are receiving a CP504, it means you likely ignored or failed to respond to previous notices informing you of unpaid balances on one of your tax accounts. This is your final notice to pay; the IRS will provide no further courtesies or warnings about unpaid balances.
You still have options, but CP504 notices signal that the IRS is done waiting. They may already be taking steps to levy your income and bank accounts. Your notice will detail the exact amount you must pay to avoid this fate and provide basic guidance on payment options.
Is It Urgent?
Yes, a CP504 notice is very urgent. The IRS requires those receiving a CP504 notice to immediately pay their total debt or contact the IRS to find a solution.
The IRS will soon begin levying your wages and accounts, especially if you continue to delay after receiving a notice. Federal tax liens and delinquent account status can also affect your ability to receive credit and renew a passport.
Your options are still open now, but only if you kick it into high gear. There is no way to ignore this situation; eventually, your financial accounts, assets, and state tax refunds are at risk. Payment plans are a great option if you don’t have enough funds to cover your balance. The IRS is often willing to work with taxpayers who respond to CP504s instead of ignoring them.
A large unpaid tax balance can feel debilitating, and we understand the immense stress involved. Highland Tax Resolution can help taxpayers identify their best path forward to avoid levies and leave tax issues in the rearview mirror.