IRS Notices CP-90 and CP-504 and why you should be concerned.

IRS Notices CP-90 and CP-504 why you should be concerned.

CP-90 and CP-504 are both IRS letters of final warning. Pay attention to them or you may have your money levied. The IRS can and will Levy from your bank, Social Security, Retirement or other.

CP-504 warns you that they “may” levy.

IRS letter CP 504

CP – 504

CP-504 warns you that they “may” levy.

IRS CP90 letter

CP – 90

Let me break this down at little more.

The CP-90 is the last letter by law that the IRS has to send you. The CP-504 is the next to the last letter that they must send you. These letters attempting to collect or make some arrangements with the taxpayer to collect before they can Levy. They are not messing with this anymore there just going to levy from you what where they can. Can they, Yes, will they maybe.

When will this happen?

Did you check your bank accounts today? The IRS can be very sneaky. If it’s the computer issuing an automatic levy notice then it usually will hit most banks on a Friday that’s because that’s when most people get paid.  A human then may find out you banking habits and wait until they can take as much as possible. They can look at deposit history and try to guess as to when you might make a large deposit. They can find out what day of the month that you usually have the largest balance and wait to levy on that day. This especially goes for businesses who usually have the most money right before payroll.

Prior to the CP-90

The CP-504 which is a letter asking you to contact them so that a resolution can be made before they issue the CP-90. Before the CP-504 there usually are many different letters that notify you that they are wanting your attention. Depending on what your issue is with the IRS the time frame from the first letter to the Last letter is usually three to six months.

An IRS Trick to get to your money.

I have personally seen where a taxpayer has received the CP-504 and then about three weeks later the IRS has levied them. The CP-90 tells the taxpayer that the IRS now has met the requirements to levy and they may levy at any time. The IRS’s trick is that the Agent will prepare the CP-90, have it dated and put postage on it. They will put it on their desk days before they mail it so that you receive the letter after the required notice date.

When you receive the CP-504

You should immediately remove any money from any banking accounts and start to work with cash and money orders. Those who receive Direct Deposit funds you need to be to the bank when it opens to try to withdraw most of the money.

For more information see IRS levies.

For information on seizures see my blog post.

About John

John E. Jones, EA is an Enrolled Agent enrolled by the US Department of Treasury and has been granted the privilege of representing taxpayers before the IRS. John's specialty is general tax debt resolution and more specifically representing extreme hardship cases and seniors with compliance and resolution.
This entry was posted in IRS Notices and tagged , . Bookmark the permalink.