Let them know you are submitting an Offer and ask for a hold on collection activity to ensure levies and garnishments do not go out while you are waiting for your Offer to get into processing status.īottom line: Start getting your case resolved or collection attempts are coming soon. If you are mailing in an Offer In Compromise and have received a CP90, it’s strongly recommended to call the IRS collections number listed on your letter, often it’s (800) 829-7650, or the Revenue Officer assigned to your case if there is one. You are just now further along in the collections process and it’s time to take action quickly. The resolutions you would seek are the same as those above listed for #1, the CP504 notice. Set up arrangements with the IRS to deal with the issue, or hire someone to act as your intermediary, such as a tax attorney. CERTIFIED MAIL RECEIPT TRACKER HOW TOHow to Respond to a Final Notice of Intent to Levy: Final Notice of Intent to Levy (CP90)Ī CP90 Final Notice of Intent to Levy letter is an IRS certified mail letter letting you know the IRS will try to levy or garnish you 30 days from the date of the letter.Ī levy is an attempt at a forcible collection of debt through legal means – garnishing a paycheck, filing a lien on the property, seizure of property, confiscating a bank balance, or whatnot. See our Offer In Compromise vs bankruptcy comparison for more information.īottom line: The purpose of the CP504 is to notify you that your case is getting closer to collection activity. Not all taxes qualify for bankruptcy and if you only owe tax debt, Offer In Compromise is almost always the better option. Offer in Compromise, Currently Not Collectible Status and bankruptcy are other options. You might be able to pay the balance all at once and if so that’s often the easiest solution followed up by a First Time Penalty abatement. Think about how you are going to resolve the taxes owed. How to Respond to Outstanding Balance Letters: The arrival of the certified cp504 letter signals a further warning before they begin to take more proactive steps in recovering the balance. The certified notice will only happen after they have sent you ordinary “balance due” notices. Pretty self-explanatory: You owe them money. Outstanding Balance / Amount Due (CP504) Watch the video for a summary or keep reading on for a more in-depth analysis. Now let’s go over some of the cases where you might be the recipient of IRS-certified mail. As a general rule, the clock starts ticking the date of the certified letter from the IRS, so you want to take action as soon as possible. It’s up to you to keep your address up to date by filing returns or filing a change of address with the IRS.
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