Where you are in the collection ladder
CP14 → CP501 → CP503 → CP504 → LT11/Letter 1058. After the CP504, levy action starts. You have time, but not a lot.
What to do now
Call the office immediately. If we set up an installment agreement before CP504 issues, we avoid the intent-to-levy stage. Collection alternatives are easier to negotiate before the IRS files a Notice of Federal Tax Lien.
Common questions
- Will a tax lien hurt my credit?
- Federal tax liens no longer appear on credit reports under Fair Credit Reporting Act changes, but they still affect mortgage applications and business credit. Avoiding them is preferable.
Related
IRS Notice & Letter Response
Responding to IRS notices (CP2000, CP14, CP504, LT11 and others) within the deadline, with proper documentation. You get a copy of the entire response packet.
Tax Relief & Back Taxes
Back tax filings, installment agreements, penalty abatement, and offer-in-compromise support for taxpayers behind with the IRS. We file first, then negotiate.
Responding to an IRS CP501 Reminder
The CP501 is a first reminder that your balance is still due, with interest and penalties accruing. Ignore it and CP503, then CP504 (intent to levy) come next.
Responding to an IRS CP504 Intent to Levy
The CP504 is a notice of intent to levy. Your state refund is the first target; federal levy on wages and bank accounts follows an LT11. Your remaining options.