Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 6, 2019 5:23:01 AM

I received notice CP504 regarding unpaid taxes. In years past I ignored their letters and used my refund from the year after to pay off the debt.

I had once owed taxes and ignored the letters all while never setting up a payment plan. I simply ignored the letters all the way up til the next time I did my taxes the year after and used that refund to pay it off. The only consequences I faced that year was late fees and interest which wasn't much. For some reason I feel this time I cannot do the same? 

0 6 742
6 Replies
Level 15
Jun 6, 2019 5:23:02 AM

You don't indicate that in Turbo Tax.  If you are getting a refund the IRS will automatically take it for past due.  What problem are you having?  Oh, I don't know if something changed with the IRS.  Maybe your refund wasn't enough to cover all the unpaid taxes?

New Member
Jun 6, 2019 5:23:04 AM

The question I guess I never got to was are they actually going to seize wages, property, etc. before I do my 2017 taxes? My 2017 tax refund should be enough to pay off the unpaid balance but can I wait til then?

Level 15
Jun 6, 2019 5:23:05 AM

Doesn't sound like you can wait.  Better call them up.

Level 15
Jun 6, 2019 5:23:07 AM

Do you ever plan to apply for a home, education or car loan ? If so, this could come back to haunt you.

Level 15
Jun 6, 2019 5:23:08 AM

If you are perpetually behind in paying your taxes the IRS can & will demand you be withheld at work as single & zero allowances so I would try harder to keep up ...

<a rel="nofollow" target="_blank" href="https://www.irsmedic.com/blog/2017/06/irs-notice-cp504.html">https://www.irsmedic.com/blog/2017/06/irs-notice-cp504.html</a>

Level 15
Jun 6, 2019 5:23:10 AM

Found this IRS

https://www.irs.gov/individuals/understanding-your-cp504-notice

Call the IRS right away using the phone number on the notice you received and speak directly with an IRS agent.