WHAT IS CP504 - NOTICE OF INTENT TO LEVY?

It is the duty of every U.S. citizen to file and pay their taxes each year. Taxes provide funds for critical government infrastructure and services. When taxpayers fail to file or address an unpaid balance in time, the IRS may send a CP504 notice.

What does the CP504 Form mean?

The IRS has a series of notices that it sends to delinquent taxpayers. IRS Form CP504 is an urgent notice that informs you not only A) of an unpaid balance, but that B) the unpaid balance must get resolved as soon as possible to avoid damaging actions like a tax levy.

Consequently, it is imperative that you take the CP504 notice seriously. It gives the IRS permission to seize your state tax refund to resolve the unpaid balance if another action is not taken.

Learn more about IRS Form CP504 and ways to address the issue before a more serious punishment is permitted by the Internal Revenue Service.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

What Does the CP504 Form Mean?

The Internal Revenue Service (IRS) sends out reminders and warnings through a series of notices. IRS CP504 Form is a type of notice that informs the delinquent taxpayer of an unpaid balance.

If the tax debt is not resolved quickly, the IRS has the power to seize your state tax refund and use those funds to settle the unpaid balance. However, if the state tax refund does not provide enough funds to satisfy the tax debt, additional actions can get taken against your assets like seizing property.

As a result, you should not take a CP504 notice lightly. The notice is urgent and other actions will be taken if the balance is not paid in full or the taxpayer does not pursue a tax resolution solution like proposing an Offer in Compromise.

The bottom line is that a CP504 notice opens the door for the IRS to seize your assets to resolve unpaid back taxes. Thus, if you are concerned with finding a way to resolve the tax debt, you should speak with a tax professional.

Advance Tax Relief offers several different tax resolution services for taxpayers receiving threatening notices from the IRS. Advance Tax Relief works hard to find practical ways to pay back taxes without jeopardizing your or your family’s future. Contact us today for more information at 713-300-3965.

Back Taxes Do Not Go Away

It is important that you file taxes on time every year even if you are concerned with how you will pay back taxes. Those that avoid their tax bill face harsher consequences and more obstacles toward getting back on the good side of the IRS.

Thus, when you start receiving notices from the IRS, do not ignore them. They will not go away.

The IRS CP504 Form is an urgent notice that informs you of a balance due. If you do not respond immediately, the IRS can file a tax levy against your personal property and begin seizing assets to recover the tax debt.

The IRS begins by seizing your state tax refund (if applicable). Those funds are used to pay back taxes. If the state tax refund has enough funds to cover the unpaid balance, the IRS will stop threatening you. On the other hand, if you still owe money, you may lose a business, home, or vehicle through a tax levy.

The IRS CP504 Notice is the last warning you will receive from the Internal Revenue Service before they start levying your assets. At this stage, individuals are at risk of losing their home, car, or business and there is little you can do about it.

What Should I Do if I Receive a CP504 Notice?

The CP504 notice is the last warning you will receive from the IRS before the agency begins seizing assets. Therefore, the matter is urgent, and you should take action immediately.

The CP504 notice will include the following information:

How much you owe

Payment due date

Payment options

Furthermore, the correspondence will include the consequences of not paying off the balance.

Before you act, make sure the CP504 Notice is legitimate and authorized by the IRS. The CP504 code should appear in the top or bottom right-hand corner along with contact information to confirm the notice is real.

How to Dispute a CP504?

The IRS grants taxpayers 21 days to address the issue before a tax lien or levy is filed on your property. Additionally, the IRS will assess penalties and interest for being delinquent on a tax bill.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2014, 2015, 2016, 2017, 2018, 2019 & 2020 Form 1040 tax returns or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation

#TaxAttorneys

#TaxDebtRelief

#TaxHelp

#TaxRelief

#BestTaxReliefCompanies

THE BEST METHODS TO STOP IRS TAX DEBT LEVIES

When the IRS has exhausted its civilized efforts to collect owed taxes, its next step is to issue an IRS levy. In plain English, an IRS levy is when your property is seized to pay your tax bill. This could include taking control of property and bank accounts, as well as garnishing wages.

The only surefire way to stop an IRS levy is to pay your tax bill in full, but if that’s not an option, there are other avenues to pursue. Though you will still have to pay all (or some) of the debt, the terms will be more favorable, and you’ll once again have control of your finances.

We’ll share five practical ways to stop an IRS levy and give you details on what to do next.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

File an Appeal

There are a couple of valid reasons to file an appeal, and if your request is successful, it stops a levy in its tracks. The first is to prove that the IRS levy is causing financial hardship. If you’re unable to meet essential financial obligations for survival due to the levy, then the IRS might give you some breathing room.

Another potential reason to file an appeal is if you feel there’s been some type of mistake, and the debt collection is being done in error, you’ve already paid the bill, or the amount they say you owe is not accurate. You can file an appeal by submitting IRS form 9423.

Request to Pay in Installments

An IRS levy can be both a financial and mental burden, causing you undue stress, and even embarrassment, since levies are often on the public record. It’s especially uncomfortable if your wages are being garnished because this means your employer is well aware of the situation.

Though it may seem like it, the IRS is not an unreasonable organization. All they want is to be paid what they feel they are due. If you promise to pay back the debt in a reasonable amount of time (typically three to seven years), then there’s a good chance that you can stop the IRS levy and begin making reasonably priced regular payments.

Negotiate Your Tax Bill

Did you know that it’s possible to get your tax debt reduced? An Offer in Compromise (OIC) allows you to negotiate with the IRS to decrease the amount you owe. The reduction can be dramatic, especially if you work with tax experts with a successful track record.

In addition to saving money, an OIC also halts an IRS levy, giving you control of your finances once again. There’s a catch, though. Less than half of OICs are accepted by the IRS, and you must include detailed financial records. Working with a tax expert greatly increases your chances of a successful OIC, and the relative cost is well worth it.

See if You Qualify for the Fresh Start Program

In 2008, the IRS launched a new initiative called the Fresh Start Program. In light of that year’s financial crisis, the IRS sought to make it more affordable for people to pay off their tax debt in the face of skyrocketing unemployment, upside-down mortgages, and economic uncertainty at a global scale.

Contrary to the positive-sounding name, the Fresh Start Program won’t wipe your slate clean. However, it does allow you to distribute your payments over an extended period and avoid interest, penalties, liens, seizures, and wage garnishments.

You must meet specific requirements before you can qualify, including a tax debt under $50,000 (previously $25,000). If you do meet their threshold, you can end up saving hundreds, or even thousands, of dollars.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2014, 2015, 2016, 2017, 2018, 2019 & 2020 Form 1040 tax returns or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation

#TaxAttorneys

#TaxDebtRelief

#TaxHelp

#TaxRelief

#BestTaxReliefCompanies

ARE YOU A SMALL BUSINESS OWNER AND NEED HELP WITH FILING BACK TAX RETURNS?

ADVANCE TAX RELIEF LLC www.taxdebtreliefhouston.com BBB A+ RATED CALL (713)300-3965 Advance Tax Relief is rated one of the best tax relief companies nationwide. #taxhelp #owneroperator #selfemployed #smallbusiness #smallbusinessowner #taxtipsforentrepreneurs

WHAT IS A FEDERAL TAX DEBT LIEN?

A tax lien is a legal claim made by the government when a person fails to pay one of a range of taxes, such as income tax, estate tax, or taxes on personal belongings. If payment is not forthcoming when the taxpayer receives a Notice and Demand for Payment, the next course of action from the government could be placing a tax lien against your property. These claims can be imposed by either the federal or the state government.

What Is a State Lien?

As the name suggests, a state tax lien is imposed by the state government. It enables the government to exercise a legal right over the property of the debtor in order to secure the tax that is owed. A Notice of State Tax Lien is issued before this action is taken. Depending on the assets owned by the taxpayer, the lien can apply to real estate or personal property. This lien then remains on the property in question until the taxes have been settled or another appropriate resolution is reached.

Before the Notice of State Tax Lien is issued, several steps will be taken by the government. Firstly, your tax liabilities will be assessed, after which a Bill for Taxes Due or a Final Bill for Taxes Due will be sent to you. There will then be a waiting period of 35 days, within which you must settle the tax debt or come to some arrangement before a Notice of State Tax Lien is issued.

NEED HELP WITH OFFER IN COMPROMISE, TAX SETTLEMENTS, TAX PREPARATION, AUDIT REPRESENTATION OR STOP WAGE GARNISHMENTS?

ADVANCE TAX RELIEF LLC

www.advancetaxrelief.com

BBB A+ RATED

CALL (713)300-3965

How Long Does a State Tax Lien Last?

A statute of limitations is a legal time frame during which legal action can be brought against someone. The IRS generally has up to three years from the date you file a tax return (or are required to file a tax return) to assess additional liabilities on federal income taxes.

There are two exceptions with federal taxes: 1) if you underestimate your gross income by more than 25 percent or 2) if you fail to file a return or file a fraudulent return. Under those circumstances, the statute of limitations is extended to six years and no time limit, respectively. Additionally, the federal government has 10 years from the date the final amount is due to collect unpaid taxes. However, you can reset or suspend the statute of limitations if you 1) enter an installment agreement with the IRS, 2) reach an offer in compromise, or 3) enter bankruptcy.

On the other hand, states generally follow the three-year rule for state income taxes. However, several states do not follow the three-year statute of limitations rule. For example, Arizona, California, Colorado, Kentucky, Michigan, Wisconsin, and Ohio can extend up to four years to assess additional tax obligations. Meanwhile, Minnesota provides three and a half years, and Montana allows five years. Kansas, Louisiana, New Mexico, Oregon, and Tennessee all follow a three-year timetable with limited exceptions.

Checking with your local state government can help answer more questions about the statute of limitations in your own state. You may also find it easier to consult with a tax professional regarding a state lien. Tax professionals are your best line of defense from liens and levies placed on bank accounts, property, assets, and wages.

The general rule is that a statutory lien can last for three years. However, the federal government has up to 10 years to collect a tax debt. Therefore, it is wise to reach a settlement or appeal a tax lien before the IRS can place a levy on your bank accounts or property.

How Do You Get a Lien Removed?

A tax lien is the first step the Internal Revenue Service takes to recover back taxes. Once the IRS enforces a tax levy, it can freeze your bank accounts, seize personal property and assets, as well as garnish wages.

Consequently, you want to take every precaution possible to have a tax lien removed before the IRS acts. Thankfully, there are several ways to remove a state lien. First, states place limitations on how long a lien is valid. The rules vary widely by state, which makes speaking to a tax professional your first step in avoiding harsh wage garnishments and property seizures.

Secondly, you can enter private negotiations with the IRS or state government. You can discuss the possibility of settling unpaid taxes, for example. A tax professional can help you negotiate through arbitration, mediation, or informal discussions.

Taxpayers also have the legal right to file a court order. You may also consider lien stripping (available in chapter 13 bankruptcy) or lien avoidance (chapter 7 bankruptcy). After analyzing your circumstances, a tax professional may also recommend trying to enter a property lien removal process.

Avoid State Tax Liens

Liens give the state government a significant amount of power over your finances and assets. Unfortunately, things rarely turn out well for delinquent taxpayers once a tax lien is placed. Liens offer security for creditors by allowing the government (or another creditor) to seize property or take other legal action to satisfy debts and obligations. Further, liens are public record, which means they can destroy your credit score and make it very difficult to obtain new loans.

As a result, you should consider the most viable options for removing a state lien. The first, and most obvious way, is to pay off the debt in full. However, most taxpayers reach this predicament for a reason and simply don’t have the necessary funds. Consequently, settling with the state government is a viable option, but it is only recommended if you have qualified legal representation.

You also have the right to appeal a tax lien if you believe the claim is not legitimate. There are cases in which tax liens get released or forgotten but still stay on your property, for example. Disputing a claim by filing an appeal is a legal right you have as a taxpayer, but only under specific parameters.

GET TAX RELIEF HELP TODAY

If you think that you may need help filing your 2014, 2015, 2016, 2017, 2018, 2019 & 2020 Form 1040 tax returns or past due tax returns, you may want to partner with a reputable tax relief company who can help you get the max refund and reduce your chances for an IRS AUDIT.

Advance Tax Relief is headquartered in Houston, TX. We help many individuals just like you solve a wide variety of IRS and State tax issues, including penalty waivers, wage garnishments, bank levy, tax audit representation, back tax return preparation, small business form 941 tax issues, the IRS Fresh Start Initiative, Offer In Compromise and much more. Our Top Tax Attorneys, Accountants and Tax Experts are standing by ready to help you resolve or settle your IRS back tax problems.

Advance Tax Relief is rated one of the best tax relief companies nationwide.

#FreshStartInitiative

#OfferInCompromise

#TaxPreparation

#TaxAttorneys

#TaxDebtRelief

#TaxHelp

#TaxRelief

#BestTaxReliefCompanies