Understanding the IRS CP504 Collections Notice

What this notice is about?

The IRS sent you this notice because it claims to have not received payment of an unpaid balance. This serves as your Notice of Intent to Levy (Internal Revenue Code Section 6331 (d)). If you don’t pay the amount due immediately, the IRS can levy your income and bank accounts, as well as seize your property or your right to property including Social Security income and your state income tax refund to pay the amount you owe.

What you need to do?

The notice explains how much you owe and your payment options. Make a payment plan if you can’t pay the full amount you owe. However, if you are not able to make a payment for the amount due, believe that there is an error with the amount due, or want to know if the IRS may be open to abating penalties for the amount due, call our offices immediately at (833) IRS-PROB or (214) 214-3000.

Frequently Asked Questions Regarding the IRS Notice of Intent to Levy

What is the notice telling me?

This letter is your Notice of Intent to Levy as required by Internal Revenue Code Section 6331 (d). It is your final reminder telling you that we intend to levy your wages, bank accounts, or your state tax refund because you still have an unpaid balance on one of your tax accounts. To avoid this, the IRS wants you to pay the amount you owe immediately. This notice also explains the denial or revocation of a United States Passport among other collections actions available to the IRS.

What do I have to do?

The IRS wants you to pay the amount shown on your notice immediately. You can pay the balance online or mail the IRS your payment in the envelope included. Include the bottom part of the notice to make sure the IRS correctly credit your account. If you can’t pay the full amount, call our offices immediately at (833) IRS-PROB or (214) 214-3000.

What happens if I don’t pay or take any action?

If you don’t pay the amount due immediately or make payment arrangements, the IRS can file a Notice of Federal Tax Lien publicly establishing its priority with your creditors. If the tax lien is in place, you will find it difficult to sell or borrow against your property. The tax lien would affect your ability to get credit ― which may harm your credit rating. In addition, the IRS can seize (“levy”) any state tax refund to which you’re entitled. If you still have an outstanding balance after the IRS seizes (“levy”) your Social Security, payments from the Federal government, and/or state tax refund, the IRS may send you a notice giving you a right to a hearing before the IRS Independent Office of Appeals, if you haven’t already received such a notice. Property that the IRS will levy includes: wages, real estate commissions, and other income, and assets include: bank accounts, business assets, personal assets (including your car and home) Social Security benefits.

Who should I contact?

If you have any questions about the notice, call IRSProb.com now at (833) IRS-PROB or (214) 214-3000 and get a time with our Tax Relief Professionals.