It is the duty of every U.S. citizen to file and pay their taxes each year. Taxes provide funds for critical government infrastructure and services. When taxpayers fail to file or address an unpaid balance in time, the IRS may send a CP504 notice.
What does the CP504 Form mean?
The IRS has a series of notices that it sends to delinquent taxpayers. IRS Form CP504 is an urgent notice that informs you not only A) of an unpaid balance, but that B) the unpaid balance must get resolved as soon as possible to avoid damaging actions like a tax levy.
Consequently, it is imperative that you take the CP504 notice seriously. It gives the IRS permission to seize your state tax refund to resolve the unpaid balance if another action is not taken.
Learn more about IRS Form CP504 and ways to address the issue before a more serious punishment is permitted by the Internal Revenue Service.
What Does the CP504 Form Mean?
The Internal Revenue Service (IRS) sends out reminders and warnings through a series of notices. IRS CP504 Form is a type of notice that informs the delinquent taxpayer of an unpaid balance.
If the tax debt is not resolved quickly, the IRS has the power to seize your state tax refund and use those funds to settle the unpaid balance. However, if the state tax refund does not provide enough funds to satisfy the tax debt, additional actions can get taken against your assets like seizing property.
As a result, you should not take a CP504 notice lightly. The notice is urgent and other actions will be taken if the balance is not paid in full or the taxpayer does not pursue a tax resolution solution like proposing an Offer in Compromise.
The bottom line is that a CP504 notice opens the door for the IRS to seize your assets to resolve unpaid back taxes. Thus, if you are concerned with finding a way to resolve the tax debt, you should speak with a tax professional.
Levy & Associates offers several different tax resolution services for taxpayers receiving threatening notices from the IRS. Levy & Associates works to find practical ways to pay back taxes without jeopardizing your or your family’s future. Contact us today for more information at 800-TAX-LEVY.
Back Taxes Do Not Go Away
It is important that you file taxes on time every year even if you are concerned with how you will pay back taxes. Those that avoid their tax bill face harsher consequences and more obstacles toward getting back on the good side of the IRS.
Thus, when you start receiving notices from the IRS, do not ignore them. They will not go away.
The IRS CP504 Form is an urgent notice that informs you of a balance due. If you do not respond immediately, the IRS can file a tax levy against your personal property and begin seizing assets to recover the tax debt.
The IRS begins by seizing your state tax refund (if applicable). Those funds are used to pay back taxes. If the state tax refund has enough funds to cover the unpaid balance, the IRS will stop threatening you. On the other hand, if you still owe money, you may lose a business, home, or vehicle through a tax levy.
The IRS CP504 Notice is the last warning you will receive from the Internal Revenue Service before they start levying your assets. At this stage, individuals are at risk of losing their home, car, or business and there is little you can do about it.
What Should I Do if I Receive a CP504 Notice?
The CP504 notice is the last warning you will receive from the IRS before the agency begins seizing assets. Therefore, the matter is urgent, and you should take action immediately.
The CP504 notice will include the following information:
- How much you owe
- Payment due date
- Payment options
Furthermore, the correspondence will include the consequences of not paying off the balance.
Before you act, make sure the CP504 Notice is legitimate and authorized by the IRS. The CP504 code should appear in the top or bottom right-hand corner along with contact information to confirm the notice is real.
How to Dispute a CP504?
The IRS grants taxpayers 21 days to address the issue before a tax lien or levy is filed on your property. Additionally, the IRS will assess penalties and interest for being delinquent on a tax bill.
For many taxpayers, the first step in resolving a CP504 Notice is to handle the matter with a professional tax service. Levy & Associates employs former agents with the IRS that provide critical insight regarding notices like the CP504 and how to deal with the tax agency.
We can help you get out of tax debt and resolve the issue without losing any personal assets. There are many tax resolution services that one can consider if they are having trouble resolving tax debt.
Contact us today or call 800-TAX-LEVY.