CP604 Notice: How to Avoid IRS Collection Actions
Summary:
The CP604 Notice is an official communication sent by the IRS informing a taxpayer of unpaid debt on their account. It warns that if the amount is not paid immediately, the IRS will take action, such as seizing state tax refunds to apply toward the debt. The notice provides details about the outstanding balance, steps to address the debt, and potential consequences if ignored.
Receiving a CP604 Notice from the IRS can be alarming. It’s a formal reminder that there is an outstanding balance on your account, and it’s crucial to resolve it quickly to avoid further penalties or actions, such as garnishment of state tax refunds. The IRS takes such issues seriously, and this notice is designed to prompt immediate action. In this article, we’ll walk you through the meaning of a CP604 Notice, how to handle it, and the consequences of not responding. Whether you’ve received one or are just looking to be prepared, understanding this notice can help you navigate the situation smoothly.
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What is a CP604 Notice?
A CP604 Notice is issued by the IRS when a taxpayer has an unpaid balance on their account. This notice is part of the IRS’s collection process, which is triggered when a debt is not paid by its due date. The CP604 warns that failure to pay immediately may result in the IRS taking action, such as seizing any state tax refunds that the taxpayer is entitled to, and applying them to the unpaid debt.
The notice outlines the amount owed, including any accrued penalties or interest, and provides information on how to make a payment or dispute the debt. It is important to carefully read the notice to fully understand the specifics of your situation and the deadlines for taking action. Ignoring the notice can lead to serious consequences, including enforcement actions by the IRS.
Why did you receive a CP604 Notice?
You received a CP604 Notice because the IRS has identified an unpaid balance on your account that requires immediate attention. There are several common reasons why a taxpayer might receive this notice, including:
Unpaid taxes
The most straightforward reason for receiving a CP604 Notice is unpaid taxes. This could result from underpaying during the tax year, miscalculating your taxes, or failing to pay the full amount owed by the deadline.
Penalties and interest
If you missed the payment deadline or failed to file your taxes on time, the IRS may add penalties and interest to your original debt. The CP604 Notice will reflect this updated balance, including any additional charges.
Previous IRS notices ignored
The CP604 Notice is often issued after one or more previous IRS notices have been ignored. If you’ve been notified of an outstanding balance before but did not respond or make payment arrangements, the IRS escalates the situation by issuing a CP604 Notice as a final warning before taking further action.
What actions can the IRS take if you don’t respond?
If you fail to respond to a CP604 Notice, the IRS can take several actions to recover the unpaid debt. These actions can have serious financial consequences, so it’s important to address the notice promptly.
Seizing state tax refunds
The most immediate action the IRS may take is to seize any state tax refunds that you are entitled to. This means that instead of receiving your refund, it will be applied toward your federal debt. The IRS works with state tax authorities to intercept these refunds and direct them to your unpaid balance.
Wage garnishment
Another potential consequence is wage garnishment. The IRS can instruct your employer to withhold a portion of your paycheck and send it directly to the IRS until your debt is paid off. This can be financially disruptive, especially if you rely on your full income to cover daily expenses.
Bank levies
The IRS also has the authority to levy your bank accounts. A bank levy allows the IRS to seize funds directly from your bank account to satisfy your debt. This can leave you without access to necessary funds and create significant financial strain.
Tax liens
A tax lien is another tool the IRS can use. A lien is a legal claim against your property, including real estate or personal property, as collateral for your debt. This can impact your credit score and make it difficult to sell or refinance property.
Pro tip
Set up an IRS online account to easily track your notices, balances, and make payments. This will help you respond to any IRS communication promptly and avoid potential penalties.
Steps to take when you receive a CP604 Notice
Receiving a CP604 Notice may feel overwhelming, but taking the right steps can help you resolve the issue efficiently and avoid further penalties. Here’s a step-by-step guide to managing this notice:
1. Review the notice carefully
The first thing you should do is carefully read the notice to understand exactly how much you owe and why. Make sure the amount is correct and matches your own records. The notice will also provide a deadline for payment, so be sure to note this date.
2. Verify your debt
If you believe there is an error in the amount owed, or if you’ve already made a payment, you’ll need to verify the debt. This might involve reviewing past tax returns, payment receipts, or communicating directly with the IRS to dispute any discrepancies.
3. Make a payment
If you agree with the amount owed, the next step is to make a payment as soon as possible. The notice will include instructions for paying the balance, which can typically be done online, by phone, or by mailing a check. You can also arrange a payment plan with the IRS if you are unable to pay the full amount immediately.
4. Set up a payment plan
If paying the full amount at once is not feasible, the IRS offers payment plans. You can request a short-term extension or apply for a long-term installment agreement, which allows you to pay the debt in smaller, more manageable amounts over time. It’s important to set up this plan quickly to avoid further penalties.
5. Contact a tax professional
If you’re unsure about how to proceed or if you’re dealing with a large tax debt, consider contacting a tax professional. Certified public accountants (CPAs), tax attorneys, or enrolled agents can provide valuable guidance and may help you negotiate with the IRS for better terms or even reduce the amount you owe.
Pro tip
If you’re unable to pay the full amount listed in the CP604 Notice, don’t ignore it. Contact the IRS to negotiate a payment plan and prevent enforcement actions like wage garnishment or bank levies.
How to dispute a CP604 Notice
If you believe that the CP604 Notice was issued in error or that the amount owed is incorrect, you have the right to dispute the notice. Here’s how you can dispute the IRS’s claim:
1. Gather documentation
Before contacting the IRS, gather all relevant documentation that supports your dispute. This may include copies of your tax returns, payment receipts, or any correspondence with the IRS regarding your account.
2. Contact the IRS
Call the IRS at the phone number listed on the notice to explain your situation. Be prepared to provide the documentation you gathered, and clearly explain why you believe the notice is incorrect.
3. Submit a written dispute
In addition to calling, you can also submit a written dispute to the IRS. In your letter, include your name, taxpayer identification number (TIN), the notice number (CP604), and a clear explanation of why you are disputing the amount. Attach copies of any supporting documentation.
4. Wait for a response
The IRS will review your dispute and respond in writing. This process can take several weeks, so be patient and ensure you keep copies of all correspondence. If the IRS agrees with your dispute, they will adjust your account and notify you of the changes.
Pro tip
Consult a tax professional if you receive a CP604 Notice. They can help you navigate the situation, ensure all amounts are accurate, and even negotiate on your behalf to reduce penalties.
Consequences of ignoring a CP604 Notice
Ignoring a CP604 Notice can lead to escalating consequences, both financially and legally. Here’s what can happen if you fail to take action:
Worsening penalties and interest
The IRS charges interest and penalties on unpaid tax debt, and these charges will continue to accumulate as long as the debt remains unpaid. Ignoring the notice will only increase the amount you owe over time.
Loss of refunds
As mentioned earlier, the IRS can seize any state tax refunds you are entitled to and apply them to your unpaid balance. If you expect a state refund, you will not receive it if your CP604 Notice goes unresolved.
Enforcement actions
In addition to garnishing wages and levying bank accounts, the IRS can take other enforcement actions, such as placing a lien on your property or seizing your assets. These actions can severely impact your financial situation and creditworthiness.
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Frequently asked questions
Why did I receive a CP604 Notice?
You received a CP604 Notice because the IRS has identified an unpaid balance on your account. This could be due to unpaid taxes, penalties, or interest that has accumulated over time. It could also be triggered by errors in your tax filings or missed payments from prior tax years. The IRS sends this notice to alert you of the debt and warn you of potential enforcement actions if the balance is not addressed.
How do I pay the balance mentioned in the CP604 Notice?
You can pay the balance listed in the CP604 Notice using several methods. The IRS allows for online payments through its website, which is one of the fastest ways to resolve the debt. Alternatively, you can pay by phone, or send a check or money order by mail to the IRS. If you cannot pay the full amount at once, consider setting up a payment plan. The notice will include specific instructions on how to make a payment.
What happens if I can’t pay the full amount?
If you are unable to pay the entire balance listed on the CP604 Notice, you should immediately contact the IRS to explore payment plan options. The IRS offers both short-term and long-term payment plans, allowing you to spread the payments over time. Interest and penalties may still apply, but setting up a payment plan can prevent more serious enforcement actions like wage garnishment or levies.
Can I dispute the amount on the CP604 Notice?
Yes, you can dispute the amount if you believe the CP604 Notice was issued in error or the balance is incorrect. To do so, gather all relevant documentation (such as tax returns and payment receipts) and contact the IRS. You can dispute the notice by phone or through a written request, providing evidence that supports your claim.
What are the penalties if I ignore the CP604 Notice?
Ignoring the CP604 Notice can lead to increasing penalties, interest, and enforcement actions. The IRS may garnish your wages, levy your bank accounts, or seize state tax refunds. If the issue is not resolved, the IRS can also place a lien on your property, making it difficult to sell or refinance. Additionally, the amount owed will continue to grow due to accumulating interest and penalties.
Can I avoid having my state tax refund seized?
Yes, you can prevent the IRS from seizing your state tax refund by paying the balance listed in the CP604 Notice before any further action is taken. If you cannot pay the full amount, setting up a payment plan with the IRS may also prevent them from taking your refund. Responding to the notice promptly is key to avoiding this enforcement action.
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
- The CP604 Notice alerts taxpayers to unpaid debt and warns of potential IRS enforcement actions if the balance is not paid.
- To avoid penalties like wage garnishment or seizure of state tax refunds, it is important to act promptly by paying the debt or setting up a payment plan.
- Ignoring the CP604 Notice can lead to escalating consequences, including increasing penalties and enforcement actions.
- Taxpayers have the right to dispute the notice if they believe the balance is incorrect or issued in error.
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