After the IRS sends a notice of an unpaid tax bill and the taxpayer does not make a payment or respond to the notice, the IRS will issue a CP504 Notice that the IRS intends to levy your assets. You may have never received a prior notice of the tax bill, cannot afford to pay the tax bill, or do not believe the tax bill calculation is correct. However, after a CP504, you need to take immediate action to protect your property.
If you received an IRS CP504 Notice in Maryland, contact Juda Gabaie at Gabaie & Associates, LLC for help.
What is an IRS Notice CP504?
A CP504 Notice is a letter from the Internal Revenue Service (IRS) that the taxpayer has an amount due on their account. Generally, the IRS sends a notice of the tax due before issuing a CP504 and the taxpayer did not make a payment or take corrective action.
The CP504 Notice also indicates the amount of tax due and the due date of the payment. The notice may also indicate a “failure-to-pay penalty” and “interest charges.” These amounts are added to the underlying tax amount due and may continue to accrue until the payment is made.
If the payment is not received or the taxpayer does not respond to the notice, the IRS may seize the taxpayer's state tax refund. The IRS may then levy or seize other property or rights to property, including:
- Wages, real estate commissions, and other income
- Bank accounts
- Business assets
- Personal assets
- Social Security benefits
Next Steps After Receiving a CP504 Intent to Levy
After receiving a CP504, you should take immediate action. The notice will provide a due date to respond. Failure to respond by that due date will likely result in a tax levy to your accounts and property. Contact a reliable Maryland tax attorney as soon as you receive an IRS notice to understand your rights, your options, and the next steps to take.
Pay the Balance Due
If you are financially able and do not dispute the assessment, you can pay the balance due by the due date. Payment can be made electronically, by mail, or by credit card for a fee. You may want to contact the IRS to ensure they received the payment by the due date.
If You Cannot Pay the Balance
If you cannot pay the entire amount, you may be able to arrange a payment plan with the IRS. This may include installment agreements and online payment agreements.
In some cases, you may be able to settle the amount of tax debt through an offer in compromise. An offer in compromise can allow you to pay less than the full amount, if the IRS accepts the offer, through a lump-sum payment or periodic payment plan.
Do Not Agree With the Notice
If you do not agree with the tax notice, you still have to respond immediately or risk having the IRS seize your property. Your tax attorney can represent you on your behalf to deal with the IRS, challenge incorrect assessments, or negotiate to reduce your tax bill.
Questions About Your IRS Notice for Maryland Tax Lawyer
If you received a Notice CP504 from the IRS and have questions or concerns before making a payment, contact Gabaie & Associates, LLC for a free consultation. You can contact Juda Gabaie online or call (410) 862-2198 for help with your IRS or Maryland tax issues.