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The CP504A notice is issued by the IRS to inform taxpayers that they intend to levy their state tax refund to satisfy unpaid federal taxes. This notice serves as a warning that further collection actions may follow if the taxpayer does not resolve their tax debt.
Key points in CP504A:
- The notice specifies the amount owed, including any penalties and interest, and indicates that the state tax refund will be levied unless payment is made.
- Taxpayers can avoid the levy by paying the balance in full, negotiating a payment plan, or requesting a Collection Due Process (CDP) hearing.
- The notice includes contact information for the IRS and instructions for resolving the issue.
Taxpayers receiving CP504A should act quickly to prevent the levy from being executed and to address their tax debt.