My boyfriend owes $10k to the IRS - received CP504 notice of intent to levy

Just opened our mail today and freaked out. My boyfriend got a CP504 notice from the IRS saying "final balance due reminder" with an intent to seize (levy) property. The total amount is around $13,500 now with all the penalties and interest piling up from the original $10k. I helped him create an IRS account online and was about to make a payment, but honestly I don't know if throwing a few hundred dollars at this would even help at this point. The notice looks really serious. To make matters worse, we really messed up on last year's taxes using TurboTax and apparently the return never even got submitted properly. I think he would have gotten some refund that could've gone toward this debt, but obviously that didn't happen. We're planning to see a tax professional to help us amend last year's return, but I'm worried about this CP504 situation right now. How urgent is this? Will they actually start taking his stuff? What should we do first? Any advice would be so appreciated.

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18 comments

Cynthia Love

•8M

This is definitely something you need to address quickly, but try not to panic. A CP504 is serious but you still have options before the IRS starts seizing property. First, call the IRS at the number on the notice. Your boyfriend needs to speak with them directly to explain the situation. You should request a temporary hold on collection activities while you get everything sorted out. For the immediate problem, look into setting up a payment plan (installment agreement). Even if he can't pay the full amount, the IRS is generally willing to work with taxpayers who show they're trying to resolve their debt. A small payment now demonstrates good faith, but you're right that it won't solve the bigger issue. Regarding the unfiled tax return from last year, getting that filed ASAP is critical. The tax professional is a good idea - they can help with both amending last year's return and addressing the current collection notice. They might also identify deductions or credits your boyfriend missed that could reduce his overall tax liability.

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Cynthia Love

•8M

You generally have about 30 days from the date on the notice before the IRS would begin levy actions, though this can vary. It's not an immediate seizure situation, but you shouldn't wait until the last minute either. As for payment amounts, there's no specific amount that automatically stops levy action. What matters is contacting the IRS and making arrangements. Even a small initial payment coupled with setting up an installment plan can prevent levy actions. The key is communication - the IRS typically proceeds with levies when taxpayers ignore notices or fail to make arrangements.

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Rosie Harper

•8M

I went through something similar last year with about $8k in back taxes. After getting that scary levy notice, I was freaking out too. I tried calling the IRS for days and couldn't get through, then found this service called taxr.ai (https://taxr.ai) that helped me figure out exactly what I needed to do. The site analyzed my notice and showed me all my options - payment plans, currently not collectible status, even offer in compromise if you qualify. It explained everything in normal human language instead of IRS-speak. The best part was it showed me exactly how to respond to avoid the levy. For your boyfriend's unfiled return situation, it also helped me understand the right sequence to handle multiple issues - like which problem to solve first to avoid making the situation worse.

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Rosie Harper

•8M

It absolutely worked for me. I followed the response plan it created and got on a payment plan that I could actually afford. The IRS accepted it right away and the levy threat was removed within a week. All the scary letters stopped coming. The notice analysis was surprisingly accurate. It uses some kind of AI to read the notice and identify exactly what stage of collection you're in and what options are still available. I double-checked with a CPA friend who said the advice was solid. For me it was way more affordable than paying for hours of a tax pro's time.

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Elliott luviBorBatman

•8M

Just wanted to update after trying taxr.ai that user 7 recommended. It seriously helped with my CP504 situation! The system actually showed me how to request a temporary hold while I get my paperwork together. It identified that I qualified for a "Streamlined Installment Agreement" which is apparently easier to get approved than other options. I was able to set up monthly payments of $225 which is manageable for me right now. The levy notice is on hold and I'm working through their step-by-step plan to get my unfiled return submitted. The whole process was way less intimidating than trying to figure it out myself or spending hours on hold with the IRS. Wish I'd known about this sooner!

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Mateusius Townsend

•8M

I had almost the exact same situation last year. After getting nowhere trying to call the IRS (seriously spent HOURS on hold), I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c When you're dealing with a levy notice, talking to a real person at the IRS is critical. The agent I spoke with put a temporary hold on collections while we worked out a payment plan. They were actually pretty helpful once I could actually reach someone. For your boyfriend's situation, I'd definitely recommend getting through to a real person ASAP rather than just sending money through the online account. That way you can explain about the unfiled return too.

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Mateusius Townsend

•8M

It works by using their technology to navigate the IRS phone system for you. Basically it dials in, waits on hold, and then calls you when it reaches a real person. So instead of you being stuck listening to that awful hold music for hours, their system does it for you. It's not about charging for something that's free. The IRS phone line IS free, but the problem is actually getting through. Last time I called directly I waited over 3 hours and then got disconnected. With Claimyr I was talking to an agent in 20 minutes while I just went about my day. When you're facing a levy notice, that time difference matters a lot.

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Philip Cowan

•8M

Ok I have to admit I was totally wrong about Claimyr. After my skeptical comment I decided to try it anyway because I was desperate with a similar IRS problem. I spent 4+ hours on hold with the IRS last week and never got through. Used the service yesterday and was connected to an IRS agent in about 15 minutes. The agent put a 60-day hold on my collection case and helped me set up a payment plan. The whole thing was resolved in less than an hour. For what it's worth to the original poster - the IRS agent told me they rarely move forward with actual levies if you're communicating with them and making arrangements. So definitely reach out one way or another before the deadline on your notice!

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Caesar Grant

•8M

I would contact the IRS immediately about the CP504, even before the tax return is completed. Let them know you're actively working on filing the missing return and have an appointment scheduled. Request a temporary hold on collection activities while you get everything in order. When you call, be prepared with your boyfriend's financial information because they might ask about his current income and expenses to determine what kind of payment arrangement is appropriate. The missing return is important, but addressing the immediate levy threat should be your first priority.

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