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Tax Defense Network: Most Common IRS Collection Letters

The IRS sends many kinds of notices to taxpayers. Some notices inform taxpayers about the additional taxes they need to pay for various reasons, such as changes to their tax return. Some notices explain aggressive collection actions the IRS is taking against a taxpayer, such as a tax lien or levy. Tax Defense Network discusses the collection letters that taxpayers may receive.

Tax Defense Network: IRS Collection Letter CP-504

Taxpayers receive a CP-504 Notice when they have a tax debt and the IRS intends to issue a levy against their state tax refund. Tax Defense Network explains that taxpayers need to pay the specified amount as soon as possible to avoid further actions like a levy against their assets.

A tax levy is the IRS’ legal right to seize and/or sell the property of taxpayers who owe taxes to the government and fail to satisfy the debt.

A CP-504 Notice also informs taxpayers that the IRS will begin searching for other assets on which to issue a levy. Tax Defense Networks warns taxpayers that any further delay in paying their tax debt can lead to the seizure of a taxpayer’s property. Taxpayers who cannot pay off their tax debt in full can opt for an Installment Agreement to pay their debt in affordable monthly payments.

Tax Defense Network: IRS Collection Letter CP-504B

A CP-504B Notice informs taxpayers they have unpaid taxes on their IRS account. In case of delay or avoidance to pay the tax debt, the IRS may levy certain property or rights to property to fulfill the tax debt amount.

Tax Defense Network suggests quick action to resolve the tax issue after receiving a CP-504B Notice. In case of delay, taxpayers can expect the IRS to file a federal tax lien against them, which can severely affect their credit, including their credit score.

Tax Defense Network: IRS Collection Letter CP-523

A CP-523 Notice informs taxpayers of the IRS’ intent to terminate their Installment Agreement and levy their assets because of a default in the arrangement. Tax Defense Network advises taxpayers to contact the IRS immediately to try and reinstate the agreement. If they fail to do so, taxpayers should hire a tax resolution company to negotiate with the IRS on their behalf.

Tax Defense Network informs taxpayers that they need to pay a fee to reinstate the agreement and may need to pay any new tax liability in full. If taxpayers do not respond to the CP-523 Notice, they can expect a federal tax lien or the seizing of wages or bank accounts.

Tax Defense Network explains that the IRS sends notices informing taxpayers about their tax debt and any collection actions they might take. These notices include:

  • CP-297A – Notice of Levy and Notice of Your Right to a Hearing
  • CP-91/CP 298 – Final Notice Before Levy on Social Security Benefits
  • Letter 1058 (LT 11) – Final Notice Prior to Levy; Your Right to a Hearing
  • CP-90/CP 297 – Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing
  • Letter 668D (LP 68) – The IRS Released the Taxpayer’s Levy

Tax Defense Network specializes in resolving tax debt issues. The company has resolved over $92 million, and counting, in client tax debts. When it comes to tax debt, the unanimous choice of American taxpayers is Tax Defense Network.

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