IRS Forms

What is CP 504 ?

Perhaps the only good news taxpayers receive from the IRS comes through a tax refund via check or a direct deposit to a bank account. Aside from that, the news may not be so welcoming. The IRS notice could mean that you have some pending tax debts. They can enforce collection and they will enforce it. Let’s check out IRS Notice CP 504 to see what it may mean for you.

What does a CP 504 entail?

A CP 504 means that the IRS is notifying you of its intention to issue a levy against a state tax refund. Aside from placing this levy on state tax refunds, the IRS is also informing you that other assets are being identified simultaneously and there may be an issuance of a tax lien on the property. Ignoring the CP 504 may have dire consequences on your personal finances.

Who can I ask for more details regarding this notification?

There is a phone number printed at the top of the letter from the IRS where you can contact their representative regarding any questions you may have about the CP 504 notice. Please do not disregard this important notice so this won’t affect your personal finances. Regardless of your ability to settle the amount, avoid any other collection actions from IRS. You must contact them straight away.

What are my payment options?

Include the bottom portion of the notice in the envelope and enclose your full payment. You need to mail this back to the IRS promptly. This will ensure your payment is properly credited in order to negate further collection activities. Other payment schemes are available if you presently have inadequate funds to settle the amount. An installment plan or other options that encourage you to make regular payments can be discussed with the IRS. Failure to do so will authorize them to enforce further collection actions. The seizure of any state tax refunds owed to you and a placement of a lien against your property are viable measures that can be undertaken by the IRS if you are unable to coordinate with them regarding full or partial payments.

If I disagree with this notice, what are my options?

Maybe in the past, you were able to make amends with the IRS regarding this issue and thought the issues had been resolved. Another case may be that this liability shouldn’t have been there at all. Please do your utmost to contact the IRS so that you can iron out any disagreements you may have regarding this notice.

Collection actions are imminent if you fail to coordinate with any of their representatives. The Office of the Taxpayer Advocate may get involved if you are unable to reach any sort of agreement with the IRS. Always remember that the sooner you can deal with the gravity of receiving a CP 504 notice, the better you can extract yourself from causing further damage to your current financial position.