Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? CP504B
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? You have an unpaid amount due on your account. If you do not pay the amount due immediately, the IRS will seize (levy) certain property or rights to property and apply it to pay the amount you owe.
- What should you do if you receive this notice?
- Read your notice carefully — it explains your due date, amount due, and payment options.
- Make your payment by your due date. Go to the payments page to find out more about your payment options.
FAQs & Additional Information
- What is the notice telling me?
- This notice is telling you that the IRS intend to issue a levy against certain property or rights to property because you still have a balance due on one of your tax accounts. You must pay this amount immediately to avoid this. It is also telling you that the IRS will begin searching for other assets on which to issue a levy. They may also file a Federal Tax Lien, if they have not already done so.
- This notice also explains the denial or revocation of a United States Passport. The Fixing America’s Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt. Additional information on passport certification is available at IRS.gov/passports.
- What do I have to do?
- Pay the amount due shown on the notice. Mail the IRS your payment in the envelope they sent you. Include the bottom part of the notice to make sure they correctly credit your account.
- If you can't pay the whole amount now, call the IRS at the number printed at the top of the notice to see if you qualify for an installment agreement.
- How much time do I have? You should pay your balance due by the due date shown on your notice.
- What happens if I don't pay or contact the IRS?
- If you don't pay the amount due, the IRS may send you a notice giving you a right to a hearing before the IRS Independent Office of Appeals if you have not already received such a notice. They may then seize (levy) your property or rights to property. Property includes:
- Wages, real estate commissions, and other income
- Bank accounts
- Business assets
- Personal assets (including your car and home)
- Social Security benefits
- This is your notice of intent to levy as required by Internal Revenue Code section 6331(d).
- If you don't pay the amount due or call the IRS to make payment arrangements, they can file a Notice of Federal Tax Lien on your property at any time, if they haven’t already done so.
- If the lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would also appear on your credit report ― which may harm your credit rating ― and your creditors would also be publicly notified that the IRS has priority to seize your property.
- If you don't pay the amount due, the IRS may send you a notice giving you a right to a hearing before the IRS Independent Office of Appeals if you have not already received such a notice. They may then seize (levy) your property or rights to property. Property includes:
- Who should I contact? If you have any questions about the notice, call the IRS at the number printed at the top of the notice. A customer service representative will assist you.
- What if I don't agree or have already taken corrective action? If you do not agree with this notice, contact the IRS immediately at the number printed at the top of the notice. The IRS will do their best to help you. If you have already paid this liability or arranged to pay it with an installment agreement, you should still call the IRS at the number printed at the top of the notice to make sure your account reflects this.
What does it look like?
Resources
Looking for more information about this notice? Here are some helpful resources:
- About the notice - https://www.irs.gov/individuals/understanding-your-cp504b-notice
- Example copy of the notice - https://www.irs.gov/pub/notices/cp504b_english.pdf
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
