The CP504C Notice is sent by the IRS to notify taxpayers that the IRS intends to levy a portion of their Social Security benefits to collect unpaid taxes. This notice serves as a final warning before the IRS takes enforcement action to garnish a portion of the taxpayer’s monthly Social Security payments.
Key aspects of the CP504C Notice:
- Levy on Social Security Benefits: The notice informs the taxpayer that the IRS will begin garnishing a portion of their Social Security benefits to satisfy the outstanding tax debt. Typically, the IRS can levy up to 15% of a taxpayer’s Social Security payments.
- Right to a Hearing: The taxpayer has the right to request a Collection Due Process (CDP) hearing within 30 days of receiving the notice. This hearing allows taxpayers to dispute the levy or propose an alternative payment solution.
- Payment Options: The notice provides payment options to resolve the debt before the levy begins, such as paying in full, setting up an installment agreement, or negotiating an offer in compromise.
- Consequences of Non-Action: If the taxpayer does not respond to the notice by the deadline, the IRS will proceed with levying Social Security benefits until the debt is paid in full or an alternative agreement is reached.
The CP504C Notice is a serious warning that requires immediate action to prevent the IRS from levying Social Security benefits to collect unpaid taxes.