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What to Do and What Not to Do If You Get an IRS CP504 Notice

Posted by Brandon Keim | Oct 11, 2021 | 0 Comments

If you owe the IRS money, it can be a stressful ordeal. The IRS can be aggressive in its collection efforts, and the penalties, fines, and interest you face with an unpaid balance can be overwhelming. An unpaid balance with the IRS can quickly spiral out of control. If you receive a CP504 Notice from the IRS, there are some immediate things you should do, and a few you shouldn't, to avoid further complications. In this post, we'll discuss some dos and don'ts related to a CP504 Notice.

What is a CP504 Notice?

 A CP504 is a notice from the IRS that you have an unpaid balance. Please don't ignore this notice because it also serves as your Notice of the IRS's Intent to Levy. If you don't pay the balance immediately, the IRS can levy your bank accounts and your paycheck. They can also seize your property or any right you have to property, like your state income tax due, and revoke your passport. A CP504 is also notice that the IRS will begin looking for other assets it can levy or seize. 

What Should I Do When I Receive a CP504 Notice?

When you receive a CP504, the IRS hasn't yet levied your property or income. But you need to act right away. You have several options, including:

  • Pay the amount due right away if you can,
  • Call the IRS and set up a payment plan,
  • File a suit in federal Tax Court, and
  • Contact a tax professional to discuss your options.

What Should I Avoid When I Receive a CP504 Notice?

Don't ignore the CP504 Notice when you receive it. This matter will not go away, and the IRS will begin aggressively seizing your property, assets, bank accounts, and pay. If you haven't already, you should contact an experienced tax professional immediately. 

Hire an Experienced Tax Attorney

If you've received a notice from the IRS, it's time to bring in an experienced tax professional. You need skilled tax guidance and advice as soon as possible. If you need help, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.

About the Author

Brandon Keim

A Certified Tax Law Specialist, CPA, partner at Frazer Ryan Goldberg & Arnold LLP, and former Senior IRS Trial Attorney, Brandon Keim holds an LL.M. in Taxation from Georgetown University Law Center.

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The act of visiting or communicating with Brandon A. Keim via this website or by email does not constitute an attorney-client relationship. Communications from non-clients via this website are not subject to client confidentiality or attorney-client privilege. Further, the articles, discussion, commentary, forms and sample documentation contained in this website are offered as general guidance only and are not to be relied upon as specific legal advice. For legal advice on a specific matter, please consult with an attorney who is knowledgeable and experienced in that area. Attorneys listed in this website practice only in the jurisdictions in which they are admitted. This website is governed by the Arizona Rules of Professional Conduct.

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