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.
Tax Relief & Back Taxes
Back tax filings, installment agreements, and offer-in-compromise support for taxpayers behind with the IRS.
Responding to an IRS CP501 Reminder
The CP501 is a reminder that your balance is still due. Next step is CP503, then CP504 (intent to levy).
Responding to an IRS CP504 Intent to Levy
The CP504 is the IRS's final notice before levying your state refund and other assets. Act fast.