What This Notice Means

The IRS hasn't received payment of your unpaid Employer Shared Responsibility Payment (ESRP). The CP504J is your Notice of Intent to Levy under Internal Revenue Code section 6331(d). It is the IRS's final reminder before levy.

The IRS is telling you it intends to levy your wages, bank accounts, or state tax refund, and that it will begin searching for other assets to levy. It can also file a Notice of Federal Tax Lien if it hasn't already.

What to Do Now

  • Pay the amount you owe immediately. Pay online, or mail payment in the envelope provided with the bottom part of the notice so it's credited correctly.
  • If you can't pay in full, apply for a payment plan through the IRS Online Payment Agreement application, or mail an installment agreement request.
  • If you disagree, call the number on your notice right away.
  • If you want to appeal, you can request an appeal under the Collection Appeals Program (CAP) before collection action takes place. Follow the instructions on your notice.

If you already paid or set up an installment agreement, call anyway to make sure your account shows it.

What Happens If You Don't Act

The IRS can file a Notice of Federal Tax Lien. That public notice establishes the IRS's priority with your creditors, makes it hard to sell or borrow against property, and can hurt your credit.

The IRS can also levy any state tax refund you're owed. If a balance remains after that, it may send you a notice of your right to a hearing with the IRS Independent Office of Appeals, if you haven't already received one. After that, it can levy other property and rights to property, including:

  • Wages, commissions, and other income
  • Bank accounts
  • Business assets
  • Personal assets, including vehicles and real estate
  • Social Security benefits

Bottom Line

This is the notice where waiting gets expensive. A levy on business bank accounts or receivables can disrupt operations fast. Pay, get a payment arrangement in place, or file your appeal now. The ESRP rules are in sections 54.4980H-4 and 54.4980H-5 of the regulations if you're disputing the amount.

If your business received a CP504J and you need to stop a levy, call us at (813) 229-7100. We act fast on intent-to-levy notices.