If you have received IRS Notice CP504 from the Internal Revenue Service, it means that you have an outstanding tax balance. The IRS sent the notice to inform you of its intent to seize, confiscate, or levy any state tax refunds that you may receive. Additionally, the IRS may take further measures if it cannot satisfy the obligation using your state refund. For example, the organization may place a levy on your federal income taxes or any other assets that you may have that they can use to pay the debt. The issue can affect your wages, home, and investments if you do not take action. These are three solutions that you have to resolve the matter:
Surrender the Full Amount Immediately
The quickest way to address the issue and have the IRS drop the levy pursuit is to pay the amount in full. Your notice will tell you the payment due date and the amount you owe. It will also give you a number that you can call to speak to someone from the Internal Revenue Service who can collect your payment. The IRS will cancel the levy as soon as you meet their obligations.
Call and Request an Installment Agreement
An installment agreement is an alternative that you can use for your tax debt. It allows you to make regular monthly payments until you eliminate your balance. The IRS is usually willing to set up a payment plan if you have a credit or debit card and have not defaulted on any previous payment arrangements. It will not hurt you to call and ask, but it will hurt you if you do nothing.
Talk to a Tax Professional
Finally, you can contact a tax professional for a consultation about your debt. The tax professional can help you discover the origin of the debt as well as come up with an effective plan to help you eliminate it. The expert can speak to the IRS on your behalf and find out more about the matter and what you can do.
Contact us to get in touch with a certified tax professional today. We can help you hold on to your assets and resolve your tax situation today.