Did you just get hit with an IRS Notice CP504J, wondering what’s next? This is a wake-up call about unpaid taxes that demand quick action. For the year 2021-2024, any tax amount you haven’t paid starts growing at a 3% interest rate. This isn’t just for the tax you owe but also affects any estimated tax payments you missed. The longer you wait, the more you’ll end up paying.

Fear not, there’s a clear path forward! This blog offers practical steps to address your IRS Notice CP504J, equipping you with the knowledge to prevent debt from growing. Keep reading to learn how you can turn this situation around and secure your financial peace of mind.

Explanation of Notice CP504J

This document is a formal notice from the Internal Revenue Service (IRS) regarding an unpaid tax debt. It alerts the taxpayer about the outstanding tax amount for a specified tax year and includes a warning that the IRS may seize the taxpayer’s property or rights to property if the amount is not paid immediately.

Key Information Provided in the IRS Notice CP504J

The purpose of Notice CP504, issued by the Internal Revenue Service (IRS), is to serve as a final warning to taxpayers about an outstanding tax debt that remains unpaid. This notice has the following information included:

  1. Amount due
    • The notice details the total amount owed, including the principal amount and interest charges, emphasizing the need for immediate resolution.
  2. Payment methods
    • Suggested methods include online payment through the IRS e-pay system and payments via check or money order to the United States Treasury,
    • with specific details to be included on the payment for identification.
  3. If Payment cannot be made in full
    • The IRS advises paying as much as possible immediately and making arrangements to pay the remaining balance over time.
    • The taxpayer is encouraged to explore various payment methods, including credit/debit cards and electronic payments, or to set up installment plans.
  4. If Payment has already been made
    • If the balance has been paid in full within the past 14 days or if payment arrangements have been made, the taxpayer is instructed to disregard the notice.
  5. Consequences of non-payment
    • Immediate Action by the IRS: If the taxpayer does not pay or make payment arrangements within 30 days, the IRS may proceed to seize property or rights to property.
    • Assets at Risk: This includes accounts receivable, bank accounts, and business assets.
    • Notice of Federal Tax Lien: Failure to pay or arrange payment may lead to the IRS filing a Notice of Federal Tax Lien, affecting the taxpayer’s ability to sell or borrow against the property. This would also negatively impact the taxpayer’s credit rating.
  6. Interest charges and rates
    • Interest is charged on the unpaid tax liability from the date the taxpayer was first notified until the full amount, including accrued interest, is paid.
    • Interest rates are variable and may change quarterly.
  7. Additional information and assistance
    • The IRS provides resources and information on its website, including tax forms, instructions, and the IRS Collection Process.
    • Taxpayers are reminded of the convenience and security of paying online.
    • Contact information for further assistance is provided.
  8. Privacy and third-party contacts
    • The IRS may need to contact third parties to gather information about the taxpayer’s account. Taxpayers have the right to request a record of such contacts.

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Author

Mr. Michael D. Sullivan

Michael D. Sullivan is the founder of MD Sullivan Tax Group. He had a distinguished career with the Internal Revenue Service for 10 years. As a veteran IRS Revenue Officer / Agent, he served as an Offer in Compromise Tax Specialist and Large Dollar Case Specialist.

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