The IRS Final Notice (CP504) is a letter that can be sent to you by the Internal Revenue Service if they have not received any response from you after, at most, four attempts. Typically, an IRS Final Notice is a notice that informs taxpayers of their tax debt or liability and gives them an opportunity to make arrangements for payment before it becomes delinquent. These notices are generally mailed on the fourth attempt made by the IRS to contact them about unpaid taxes. If this happens, there are some steps you should take right away.
What the IRS Final Notice is Trying to Tell You
The IRS Final Notice is not something that you can ignore. There are many reasons why the Internal Revenue Service will send out one of these notices, but they all have one thing in mind- getting you to pay what you owe. When taxpayers receive an IRS final notice or letter, it means that their tax debt has become delinquent. Delinquent taxes are those that have not been paid by the original due date of the return, which is typically April 15th for individuals and businesses.
The IRS must send you several notices before taking action, but the final notice is your last warning before they take more drastic measures. So, what can you do if you receive an IRS Final Notice in the mail?
What to Do When You Receive an IRS Final Notice
1. Read the letter carefully.
The first thing you should do is read the letter carefully. It is crucial that you understand what the letter is trying to tell you. Sometimes letters from the IRS can be confusing, but it should not take long for you to figure out what they are saying.
Once you understand why the notice was sent and how much money is owed in taxes, go ahead and call them. If you can get an IRS representative right away, to help you understand the content of the letter, the better. As frustrating as it may be, trying to deal with the IRS on your own may only make things worse–so it’s a good idea to get a representative involved from the word go.
2. Note the Collection Date
The collection date is the date the IRS will start taking action to collect the debt. This may include wage garnishment, seizing assets, or placing a lien on your property. The collection date is also referred to as the levy date.
The best way to avoid this from happening is by working out an agreement with the IRS before the stipulated date. You can try to negotiate a payment plan or set up an initial payment to cover the taxes you owe. Again, if you are not sure of how to go about making appropriate arrangements before the collection date, it’s crucial that you contact an IRS representation.
3. Contact A Tax Resolution Specialist
If you are unable to make the necessary payment arrangements before the collection date, it’s best to get in touch with a tax resolution specialist that can help protect your money and assets. The sooner you contact them, the better. Professionals like Morris and Associates Tax Specialists have experience helping taxpayers avoid wage garnishment or property seizure due to delinquent taxes owed.
Kenneth Morris is a Certified Tax Representation Consultant, and an Enrolled Agent in good standing with IRS, and therefore stands a good chance in helping you out with your tax situation.
Filing An Appeal On the IRS Final Notice
If you do not agree with the notice that was sent to you or feel as though the IRS is treating you unfairly, there is always the option of filing an appeal. This can be done by sending a letter to the Appeals Office within 30 days of receiving the final notice.
Be warned though- appealing your case will not stop any collection action from taking place. It will only stop the collection activity for a short period of time, while they go through your appeal process. Once they have made their decision you will either be notified by mail or in person that they have reviewed and rejected your case, at which point all collection activities can resume as normal.
Conclusion
The IRS Final Notice is a letter that can be sent to you by the Internal Revenue Service if they have not received any response from you after, at most, four attempts. This usually happens when taxpayers have failed to respond to earlier notices about their unpaid taxes. If this is the case for you, there are some steps you should take right away.
The main thing you should understand when reading the IRS Final Notice is that the IRS is giving you an opportunity to make arrangements for payment before they take more drastic measures. This notice informs you of your tax debt or liability and gives you a date by which the debt must be paid in order to avoid delinquent taxes.
Get Compliant and Get Tax Relief
Morris and Associates are experts when it comes to helping individuals and companies find tax relief in Georgia but can help no matter where you live or whatever tax questions you have. Contact us to help with your taxes and possibly even reduce the amount that you owe.
