If you have received a CP504 Notice of Intent to Levy from the IRS and are concerned about the agency levying your wages and bank accounts or seizing your other assets, Wiggam Law can help you respond to the IRS and assess your options, including payment plans.
A CP504 Notice of Intent to Levy is the IRS’s final reminder that unless you pay your outstanding tax bill, the agency will levy your wages, bank accounts, and any refunds of state income taxes. It is also notice that the IRS will begin searching for other assets on which it can place a levy, such as your car or home. In addition to levy information, the letter will explain how much you owe and your payment options.
How Many Notices Does IRS Send Before Levy?
The IRS will start sending you letters or tax bills as soon as you have an unpaid balance, whether you submitted a return and failed to make payment or the agency calculated your taxes based on third-party information, such as a W-2 from your employer or 1099 from your bank. You may receive as many as four letters, each called a Notice and Demand for Payment, from the IRS before it issues the CP504 Notice of Intent to Levy.
How Serious Is a CP504?
A CP504 is serious. It is usually sent 30 days before the IRS levies your bank accounts or wages. The IRS may deliver the notice in person to your home or usual place of business, or the agency may send it to you via certified or registered mail with return receipt requested.
If you don’t pay your bill or contact the IRS about a payment plan or other arrangement, the IRS may send a notice giving you the right to a hearing before the IRS Office of Independent Appeals. If you ignore that letter and do not pay your outstanding balance, the IRS can move forward with the levy.
The IRS can seize or levy your property, or rights to property, including:
- Wages, commissions, and other income
- Bank accounts
- Business assets
- Personal assets including your car and home
- Social security benefits
How to Respond to a CP504?
In response to the IRS notice CP504, you should pay your unpaid taxes by the deadline noted in the letter or reach out to the IRS. The levy letter will include an envelope, which you can use to mail in your tax payment, or you can pay the balance online.
If you cannot pay the full amount of your tax bill, pay as much as possible and then contact the agency. You can use the toll-free number included on your CP504 notice to call and speak to someone about a payment plan. You can also apply for a payment plan or installment agreement online. If you don’t agree with the amount of your tax bill, contact the agency to discuss it and your options for disputing the bill.
What Is the Difference Between CP504 and CP504b?
A CP504 Notice of Intent to Levy is sent to individuals. A CP504b relates to your business tax bill and signifies the IRS is intending to seize business assets if you do not pay your outstanding balance.
If you have received an IRS CP504 Notice of Intent to Levy and you do not agree with your outstanding tax bill, consider consulting one of our tax attorneys to discuss your options for disputing the bill. If you received a CP504 or CP504b and need help with installment agreements or an offer in compromise, our team of experienced attorneys can help explain the processes as well as negotiate with the IRS. Give us a call today at (404) 233-9800 to get started.