CP504B: How to Respond to IRS Tax Levy Warnings
Summary:
The IRS CP504B Notice warns taxpayers about an unpaid amount due on their account. If payment is not made immediately, the IRS may levy certain property or rights to property, including bank accounts, income, and federal or state tax refunds. This notice is an urgent call to action, as it signifies the IRS’s intent to collect on your outstanding debt, potentially through wage garnishment or property seizure. You have 30 days to pay or arrange a payment plan to avoid severe consequences.
Receiving IRS Notice CP504B is a serious matter that can significantly affect your finances if ignored. The notice is a formal warning from the IRS, informing you of unpaid taxes and their intention to levy your assets if payment is not made immediately. Whether you’re struggling to pay your taxes or disagree with the amount due, it’s important to take action before the situation escalates. In this guide, we’ll explain everything you need to know about the CP504B notice, why you received it, and the steps you can take to resolve the issue before it leads to harsher penalties.
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What is IRS CP504B Notice?
The CP504B is one of the final notices the IRS sends to taxpayers who owe taxes before initiating the levy process. It signifies that previous attempts to collect the debt were unsuccessful, and the IRS is now preparing to seize your assets, garnish your wages, or take other serious enforcement actions. If you’ve received this notice, it means the IRS has not received payment, and your account remains delinquent.
The warning behind the notice
The CP504B serves as both a reminder of your unpaid taxes and a warning of the consequences if you fail to address the debt immediately. The IRS clearly states in the notice: “You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe.” This can include levies on bank accounts, wage garnishments, and seizure of state or federal tax refunds.
Immediate action is required
The CP504B notice gives you 30 days to pay your outstanding balance or make alternative arrangements such as a payment plan. If you fail to respond, the IRS will move forward with collection actions, including placing liens or levying your property. This means they can seize bank accounts, garnish wages, or even take your property to satisfy the tax debt.
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Why did I receive IRS notice CP504B?
You received the CP504B notice because the IRS believes you owe taxes that have not been paid. In most cases, the notice is sent after the IRS has attempted to collect the debt through earlier notices, such as the CP14 or CP501. If you’ve ignored these earlier notices or failed to take sufficient action to resolve your tax liability, the IRS escalates to the CP504B to notify you that more aggressive collection actions are imminent.
What happens if I ignore the notice?
Ignoring the CP504B notice can lead to serious financial consequences. If you do not respond within the 30-day window provided by the IRS, the agency can take the following actions:
- Levy your bank accounts, seizing funds directly from them.
- Garnish your wages, deducting a portion of your income until the debt is satisfied.
- Seize federal or state tax refunds to apply to your outstanding balance.
- Place a lien on your property, potentially impacting your ability to sell or refinance.
In extreme cases, the IRS can also seize other assets, such as vehicles, homes, or retirement accounts, depending on the severity of the debt.
What should you do when you receive IRS Notice CP504B?
Upon receiving a CP504B notice, the first thing you should do is read it carefully. The notice will explain how much you owe, including any penalties and interest. You will also see the deadline by which you need to pay or take action. Ignoring the notice or failing to act quickly can lead to severe consequences, so it’s critical to move forward with the appropriate next steps.
Pro tip
Responding promptly to a CP504B notice is critical. If you can’t pay the full amount immediately, set up a payment plan or apply for other tax relief options. Delaying action can lead to wage garnishment or property seizures.
Steps to take if you agree with the amount due
If you agree with the amount the IRS says you owe, the best course of action is to pay the balance in full by the deadline. Here’s what you should do:
- Pay the balance immediately: Use the payment stub included with the notice or go to www.irs.gov/payments to make an electronic payment.
- Set up a payment plan if you can’t pay in full: If paying the full amount immediately isn’t possible, pay as much as you can now and apply for a payment plan through the IRS. You can request an Installment Agreement to make monthly payments toward your debt.
- Check for eligibility for tax relief programs: In some cases, you may qualify for an Offer in Compromise or other tax relief programs if paying the full amount would cause financial hardship.
Steps to take if you disagree with the amount due
If you disagree with the IRS about the amount you owe, you still need to take action immediately. Here’s what to do:
- Contact the IRS: Call the number listed on your CP504B notice to discuss your case. Be prepared with your notice and account number. The IRS representative may be able to clarify the issue or provide guidance on next steps.
- Request an appeal: If you cannot resolve the dispute directly with the IRS, you can request an appeal under the Collection Appeals Program (CAP) before the IRS proceeds with levying your assets. This appeal process allows you to present your case and potentially stop the levy until the issue is resolved.
- Gather supporting documents: If you believe the IRS made an error, gather all relevant documents, including past tax returns, payment receipts, or notices, to support your claim.
Pro tip
If you’re uncertain about how to handle the CP504B notice, consulting a tax professional can help you navigate the process smoothly. They can negotiate with the IRS on your behalf and explore options like an Offer in Compromise.
How to respond to IRS Notice CP504B
Responding to a CP504B notice in a timely manner is critical to avoiding a levy. Here’s a step-by-step guide on how to handle the notice:
1. Review the notice thoroughly
Take the time to carefully review the notice. Ensure you understand the amount you owe and the deadline for payment. Keep the notice for your records, as it contains important details, including your account number and payment instructions.
2. Make a payment or set up a plan
If you agree with the amount owed, pay the balance immediately or set up a payment plan. Use the IRS’s online payment portal or send a check or money order using the payment stub provided with the notice.
3. Dispute the amount, if necessary
If you believe there’s an error, contact the IRS as soon as possible to dispute the amount. Be sure to have all supporting documents ready, as this will help you resolve the issue faster.
4. File an appeal, if applicable
If you cannot resolve the issue with the IRS directly, you may need to file an appeal. The IRS allows taxpayers to appeal under the Collection Appeals Program (CAP) before the levy takes place. This can help delay collection actions while your case is reviewed.
How can you prevent IRS levies?
Preventing an IRS levy requires proactive management of your taxes. Here are some tips on how to avoid future levies:
Pay taxes on time
The best way to avoid future CP504B notices and potential levies is to pay your taxes on time. This includes estimated quarterly payments if you’re self-employed or if you anticipate owing taxes at the end of the year.
Stay in contact with the IRS
If you receive any notices from the IRS, respond promptly. Keeping the IRS informed of your financial situation or disputes can help you avoid more severe penalties down the road.
Set up a payment plan if necessary
If you cannot pay your taxes in full, set up a payment plan with the IRS. The agency offers several options, including installment agreements, to help taxpayers manage their debt without facing aggressive collection actions.
How to avoid receiving future CP504B notices
The CP504B notice is an escalation in the IRS’s collection process. Once you’ve resolved your current tax issue, it’s important to take steps to avoid receiving future notices. Here are some strategies you can use to stay in good standing with the IRS:
1. Keep up with your tax filings
One of the most common reasons taxpayers receive notices like the CP504B is due to missed or late tax filings. Always file your tax returns on time, even if you cannot pay the full amount owed. Filing your returns keeps you compliant, and the IRS offers options for taxpayers who cannot pay immediately, such as installment agreements or hardship programs.
2. Pay taxes when they’re due
Making sure you pay your taxes when they’re due is the best way to prevent tax issues. If you know you will owe taxes and cannot pay the full amount by the deadline, pay as much as you can and set up a payment plan with the IRS. This demonstrates your intent to settle the debt and may help you avoid harsher collection methods like wage garnishments or bank levies.
3. Review your tax withholdings
For employees, checking your tax withholdings can help you avoid owing a large amount at the end of the year. If you’ve received a significant tax bill in the past, it may be worth adjusting your withholding amount on your W-4 form to ensure enough is being taken out of your paycheck throughout the year. This can help prevent underpayment penalties and future CP504B notices.
4. Pay estimated taxes if self-employed
If you’re self-employed, it’s your responsibility to pay estimated taxes quarterly to avoid a large bill when tax season arrives. Many CP504B notices are sent to self-employed individuals who haven’t made quarterly payments and are caught off guard by the size of their tax debt. By estimating and paying taxes each quarter, you can avoid accumulating a large amount of tax debt by the end of the year.
Pro tip
Make sure to keep copies of all notices and correspondence you receive from the IRS. These records will be essential if you need to dispute the amount owed or appeal the IRS’s actions in the future.
What happens if the IRS levies my property?
If you fail to respond to the CP504B notice, the IRS can proceed with levying your property. Here’s what happens if your assets are seized:
1. Bank account levy
If the IRS levies your bank account, they will notify your bank, which will freeze the funds in your account. The bank is required to hold these funds for 21 days before transferring them to the IRS. This period is meant to give you a chance to resolve the issue with the IRS, either by paying the balance or arranging a payment plan. If no resolution is reached, the funds will be sent to the IRS to satisfy your tax debt.
2. Wage garnishment
The IRS can garnish your wages, meaning they will instruct your employer to withhold a portion of your paycheck and send it directly to the IRS. This will continue until your tax debt is fully paid off. Wage garnishment can significantly affect your ability to manage your day-to-day expenses, making it critical to resolve the issue as soon as possible.
3. Seizure of state and federal tax refunds
In addition to levying your property, the IRS can seize your state and federal tax refunds to apply them to your outstanding balance. If you’re owed a tax refund for the current or previous years, the IRS will intercept it and apply it directly to your tax debt.
4. Property liens
The IRS may place a lien on your property, which gives them a legal claim to your assets. This lien will remain in place until the debt is paid off, and it can prevent you from selling or refinancing your property. In some cases, the IRS may proceed with seizing property, such as vehicles, real estate, or other valuable assets.
How to release a levy or lien
If the IRS has levied your bank account or garnished your wages, you can take steps to release the levy:
1. Pay the debt in full
The quickest way to release a levy or lien is to pay the tax debt in full. Once the IRS receives full payment, they will release the levy and notify your bank or employer.
2. Set up a payment plan
If paying the full amount isn’t possible, setting up a payment plan with the IRS can stop further collection actions. Once the IRS agrees to a payment plan, they will typically release levies and garnishments, provided you remain current on your payments.
3. Prove financial hardship
In some cases, you may be able to show that the levy is causing financial hardship, and the IRS may release the levy temporarily. You will need to provide detailed information about your income and expenses to demonstrate that the levy is making it impossible for you to meet basic living expenses.
4. Request an Offer in Compromise
An Offer in Compromise allows you to settle your tax debt for less than the full amount owed if you can prove that paying the full balance would cause financial hardship. This option is available to taxpayers who meet specific eligibility criteria. If the IRS accepts your offer, they may release levies and liens on your property.
Further support options for resolving CP504B issues
If you’re unsure how to proceed after receiving a CP504B notice, there are several resources and professionals you can turn to for help:
1. Consult a tax professional
A certified public accountant (CPA), enrolled agent (EA), or tax attorney can help you navigate your options, negotiate with the IRS on your behalf, and provide guidance on resolving the debt. They can also help you explore options like an Offer in Compromise or a payment plan that works within your budget.
2. Use IRS resources
The IRS website offers a variety of resources to help you understand the CP504B notice and your options for payment plans or dispute resolution. You can visit www.irs.gov to explore their online payment options, set up an installment agreement, or learn more about your rights as a taxpayer.
3. Reach out to a taxpayer advocate
If you’re facing difficulties resolving your tax issue, the Taxpayer Advocate Service (TAS) is an independent organization within the IRS that can assist you. They provide free help to taxpayers who are having trouble resolving their tax problems through normal IRS channels.
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Frequently asked questions
Why did I receive IRS Notice CP504B?
You received IRS Notice CP504B because you owe taxes, and the IRS has not received payment or a response to earlier notices. The CP504B is the IRS’s final warning before initiating the levy process.
What happens if I ignore the CP504B notice?
If you ignore the CP504B notice, the IRS may levy your property, garnish your wages, or seize funds from your bank accounts and state or federal tax refunds to satisfy the debt.
Can I dispute the amount on the CP504B notice?
Yes, if you disagree with the amount due, you can contact the IRS to dispute the balance. Be sure to provide any supporting documents and consider filing an appeal through the Collection Appeals Program if necessary.
How do I stop the IRS from levying my property?
To stop the IRS from levying your property, you must either pay the full balance due or arrange a payment plan with the IRS. You can also file an appeal to delay the levy while your dispute is being reviewed.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- IRS Notice CP504B is a final warning that you have unpaid taxes, and the IRS is prepared to levy your property or garnish your wages if you do not take action within 30 days.
- If you agree with the amount due, you should pay the balance immediately or set up a payment plan to avoid collection actions.
- If you disagree with the amount, contact the IRS to resolve the dispute and request an appeal if necessary through the Collection Appeals Program (CAP).
- Ignoring the notice can lead to severe consequences, including wage garnishments, bank account levies, and property seizure.
- Proactively managing your taxes and responding promptly to IRS notices can help you avoid future tax levies and penalties.
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