Just received an IRS CP504 Notice of Intent to Levy - Need help ASAP

The CP504 is definitely serious - it means the IRS has sent previous notices that went unanswered. This is typically the fourth notice they send before taking collection action. First, don't panic, but do act quickly. Call the IRS at the number on your notice and request a hold on collection activities while you sort this out. You'll need to gather documentation showing the actual income was lower than what they've calculated. This includes: 1. Your documentation showing you sold your business interest in March 2017 2. The profit and loss statements your partner is preparing 3. Any bank statements showing the actual deposits you received 4. Your 2017 tax return (if you filed one) Since your LLC was registered as a partnership, you should have received a Schedule K-1 showing your share of the business income. If you didn't file a return for 2017 or didn't report the business income, you'll need to file or amend your return. You might also consider requesting an "audit reconsideration" if you believe the assessment is incorrect. The IRS publication 3598 explains this process.

I went through something similar last year with an incorrect tax assessment. After weeks of trying to reach someone at the IRS with no luck, I found this service called taxr.ai (https://taxr.ai) that helped me make sense of all the notices and figure out exactly what was happening. The tool analyzed my CP504 notice, explained what it meant in plain English, and told me exactly what documentation I needed to gather to dispute it. It saved me hours of research and stress trying to decode what the IRS was actually asking for. They have an AI that's specifically trained to understand IRS notices and translate them into simple action items. What helped most was that it showed me exactly what forms to file and how to request an audit reconsideration with the right documentation. Worth checking out if you're confused about how to proceed.

I was really doubtful about using an AI for tax problems, but after getting a similar notice last month, I tried that taxr.ai site mentioned above. I was impressed that it actually knew exactly what to do with my CP504. The system walked me through what the notice meant and gave me a checklist of everything I needed to gather. I followed their guidance for requesting an audit reconsideration, included all the documentation they suggested, and just heard back from the IRS that my tax bill was reduced from $17K to just $2,200! The whole process was much less stressful than I expected. Definitely recommend for anyone in a similar situation.

If you're trying to contact the IRS about this, be prepared for a frustrating experience. I spent WEEKS trying to get through on their phone lines when I received a similar notice. Finally found a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 20 minutes instead of waiting for hours or getting disconnected. You can see how it works here: https://youtu.be/_kiP6q8DX5c Given that you're on a CP504 notice, you definitely want to talk to a human at the IRS quickly. The service basically holds your place in line and calls you when an agent is about to answer. Saved me so much time and frustration, and I was able to get my issue resolved in one call once I actually got through to someone.

I want to apologize for my skeptical comment earlier. After multiple failed attempts to reach the IRS this week (kept getting disconnected after 1+ hour waits), I decided to try Claimyr out of desperation. I was shocked when they got me connected to an actual IRS representative in about 25 minutes. The agent was able to pull up my case, confirm what documentation I needed to submit, and put a 60-day hold on my account while I get everything together. For anyone dealing with a CP504 or similar notice with a tight deadline, being able to actually speak with someone at the IRS makes all the difference. Definitely worth it when you're facing something as serious as a levy notice.

You need to file Form 12153 Request for Collection Due Process hearing ASAP! This will stop the levy process and give you time to resolve this. You have 30 days from the date on the CP504 notice to file this. I went through this exact situation in 2019. Also, for the business situation - did you and your partner file Form 1065 (Partnership Return) for that LLC in 2017? If not, that's probably why the IRS attributed all income to you, since your SSN was associated with the business accounts. The good news is you can still file these returns late to show the correct income allocation.

Has the IRS already filed a tax lien against you? With a CP504, they might have already done this which can affect your credit. You should check your credit reports ASAP. If there's a lien, resolving the tax issue properly can get it released, but it's important to know if it's there. Also, did you actually file a tax return for 2017? If not, you definitely need to file one immediately showing your correct income. If they created a Substitute for Return (SFR) for you, they likely didn't include any deductions or business expenses, which is why the amount is so high.

From personal experience with a similar situation, don't just call the general IRS number - specifically ask for the Revenue Officer assigned to your case (should be listed on the notice). They have more authority to help than the regular phone representatives. Also, consider applying for an Installment Agreement while you sort this out, even if you plan to dispute the amount. This can prevent immediate levy actions while you gather documentation to prove the correct amount. Form 9465 is what you'd use for that. Being proactive is key - even a small payment shows good faith and may help with penalty abatement later.

Dylan, I'm sorry you're going through this stress! The CP504 is definitely serious, but the good news is that you still have time to resolve this before any actual levy action occurs. Based on your description, it sounds like the IRS is treating you as if you received all $113K in business income for the entire year ($40K + $73K), when you actually only participated for the first quarter and then sold your share. This is a common issue when business partnerships aren't properly documented with the IRS. Here's what I'd recommend as your immediate action plan: 1. **Call the IRS tomorrow** using the number on your CP504 notice and request a temporary hold on collection activities while you gather documentation 2. **Gather key documents**: Your sale agreement from March 2017, bank statements showing the $9K you received, any profit/loss statements from those first 3 months, and documentation of when you stopped being involved in the business 3. **File an amended return (Form 1040X)** for 2017 showing your correct income - likely just the portion you earned in those first few months plus the $9K sale proceeds 4. **Consider getting help** - this involves business income allocation and partnership tax issues that can be tricky to navigate alone The fact that you were only making $3-5K from your job and the business was short-term makes it very unlikely you'd owe $24K. Stay calm, act quickly, and document everything!