IRS Notice CP504 is the Final Notice Before Levy, meaning that the IRS intends to levy your property or assets if you do not resolve your unpaid tax debt. This notice is typically issued after several previous notices, such as CP14 and CP501, have gone unanswered or unpaid.
The CP504 notice warns that the IRS may seize:
- Wages through wage garnishment.
- Bank accounts by freezing and withdrawing funds.
- Social Security payments.
- Property, including vehicles or real estate.
Taxpayers receiving CP504 have one last opportunity to pay their balance or arrange a payment plan, such as an Installment Agreement, before the IRS proceeds with enforcement actions. If you cannot pay the full amount, it’s important to contact the IRS immediately to discuss alternatives.
Failure to respond to CP504 can result in wage garnishment, asset seizure, or a levy, making it crucial to take action before the IRS escalates collection efforts.