What happens after CP504 (Notice of Intent to Seize)?

Technical topics regarding tax preparation.
#1
Posts:
716
Joined:
15-Jun-2019 8:24am
Location:
Virginia
Client filed installment agreement on paper (tax owed is too high to file electronically), and I called practitioner line to hold the collection effort before the processing of the installment agreement, but the client still received the CP504 letter (Notice of Intent to Seize). I would like to know how far it is between CP504 and the real seizure or levy, and what else we could do.

The tax owed is due to the stock gain. The client put back the cash to the market, and he does not want to sell at this time. Since client has means to pay, I doubt if the IRS will approve the installment agreement. If the IRS denied the agreement, then she has to pay immediately?
Please consider visiting this post where my question at the end has not been answered yet:
viewtopic.php?f=8&t=12065, thanks!
 

#2
Mbryson  
Posts:
11
Joined:
9-Sep-2021 2:34pm
Location:
Austin, TX
My understanding is that the CP504 letter is "toothless." You have to get a letter than informs the TP of CDP rights such as the LT11 for there to be an actual levy.
 

#3
novacpa  
Posts:
1228
Joined:
28-Apr-2014 1:16pm
Location:
McLean, Virginia 22101
What happens next is your client goes to Dinner, and when the check comes and he flips out his
Debit Card, the waiter returns and says "your card has been denied" and the client turns red-faced.
It is particularly embarrassing on "hot" first dates.
 


Return to Taxation



Who is online

Users browsing this forum: BestQuestion, Google [Bot], Google Adsense [Bot], JoJoCPA and 90 guests