IRS Collection CP-504 Notice

This notice allows the IRS to take state tax refunds. Also, ten days after this notice, the failure to pay penalty rates doubles unless you pay the tax or enter into an installment agreement or have the account declated currently not collectible. Beyond that, nothing will happen until the case moves into Automated Collections in about six weeks. You will recieves a Letter 2050 followed by a Letter 1058 or the equiv. That is when it gets serious. At that point you can request a collection due process hearing.

Mr. Wellman:

Thank you I had never seen the "we can take the State Tax refund" type of Notice on a delinquent tax account.

I tell clients that when they get one marked "Urgent" in big bold headlined print page 1 center they must get ready to take Appeal steps and then when they get a follow-up marked "Final Notice of Intent to Levy" the Appeal options are presented by the IRS and usually invoked in a timely manner by me.

Of course what ACS does with many of these properly filed Appeals is a whole other story (or I should say a whole other nightmare of disinterest, incompetence and/or intentional misrouting by ACS).

I wish when a tax collection case is legitimately Appealable, the Appeal (either CDP or CAP) may be filed in the first instance with an IRS Appeals Office, instead of having to appeal to the same low level automated idiots that first created the problem and then often exacerbate it by not forwarding it to the requested local Appeal office.

As if that is not bad enough, in a large multi-tax year case often the Final Notices split the years up, come in at different times and therefore separate Appeals (covering the precise years and only the precise years in each Final Notice) must be filed creating a confusing and bifurcated case in the short or long term.

Anybody's responses on those experiences would of course be appreciated.