Dec 1, 2007

IRS Debt - the levy notice - CP 504 and L 1058

Recently the IRS stated that they are going to combine these notices in order to shorten the collection process. In review, a CP 504 is sent on a balance due account (CERTIFIED) and gives the client 10 days before a Final Notice of Intent to Levy, L 1058, is sent. The L1058 is sent, as required by law, to give the client their Appeal Rights, as required by law. This gives the client 30 days from the Final Notice date to appeal the collection proceedings.

Recent IRS chatter has speculated that the CP 504 and L 1058 will be combined into one notice, allowing the IRS to shorten the collection process. Eventually, the IRS will shortent the collection time as the CP 504 and L 1058 could be legally combined (as it was prior to 1998) to enforce a levy. It will happen in the future, it is just a matter of time and our efforts to notice it.

Look for:

1. The change in language on the certified mail to say 30 days instead of 10 days and offering a “Collection Due Process” appeal

2. Any other notice before the CP 504 that comes certified (other than the CP 523- Default on Installment Agreement)

3. Any other notice that gives 30 days to comply or levy

4. Any other notice that gives collection appeal rights

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