Irs Cp 504
IRS CP 504 notice (Electronic Public Notice), offers a serious warning to taxpayers with overdue tax debts: urgent!! You need to seriously begin to plan your financial strategy for resolution now. If not properly responded to, the IRS may start seizing assets like bank accounts, vehicles, investment funds, wages, income tax refunds and many more. The IRS CPap notice tells taxpayer that their tax due is more than six hundred dollars or an amount of interest and penalties greater than one thousand dollars. A tax-resolution professional should immediately call IRS for further clarification. This could be the first warning that you receive that the IRS is going to begin collection action. The IRS CPAP notice tells taxpayer that the collection will continue until such time as all outstanding tax liabilities have been paid in full. The CPAP is the latest in a series of IRS communications designed to provide taxpayers with assistance with managing their taxes. It is used as an incentive for prompt payment.
Irs Cp 504 and settling your taxes
If you accept the offer from IRS to settle your tax balance in full, you are waiving your right to file a complaint with IRS. To recover money that is owed to the IRS by a taxpayer, the agency must prove actual damages. The CPAP notice informs you that the agency can only recover actual damages if you file a complaint with IRS within 90 days after the notice was mailed to you. If you fail to do so, you lose the benefits of the settlement. If you don’t accept the offer from IRS, you are not waived. You remain responsible for your entire balance, including interests and penalties. Further, you are required to settle the balance in full on or before the due date. The IRS CPAP notice states that the IRS cannot require you to repay the balance in full. There may be circumstances when a tax resolution will require you to pay a portion of the debt. The CPAP notice does not set forth any conditions for paying off the debt. You should consult with a certified public accountant or tax specialist who can advise you on the best course of action to resolve your problem with the IRS. You can also get more information on how to deal with the IRS on the IRS website. The CPAP notice tells us that the IRS cannot make exceptions for you to pay your taxes. However, if you are having trouble making your monthly payments and are in serious financial distress, the notice may allow you to temporarily suspend the IRS collections. The IRS reserves the right to audit your tax account and seek immediate administrative action. The agency may seize property and financial assets that you own, but the IRS cannot haul you into court. Discuss your options with a certified public accountant or tax professional.