What Happens If You Ignore an IRS CP504 Notice?

Ignoring an IRS CP504 notice can lead to additional IRS collection notices and continued activity related to your unpaid tax balance.

If you need the full explanation first, read: IRS CP504 Notice Explained.

What Happens After CP504?

If the balance remains unresolved, the IRS may continue sending additional collection notices and warnings.

• Additional IRS notices may be sent
• Penalties and interest may continue increasing
• The IRS may continue collection activity related to the unpaid balance

Can the IRS Take Further Action?

The notice warns about possible future IRS collection actions if the balance remains unresolved.

Does the Debt Keep Growing?

Interest and penalties generally continue until the balance is paid or otherwise resolved.

Can You Still Resolve the Problem?

You may wish to contact the IRS or a qualified tax professional if you have questions about the notice.

See additional information here: How to respond to CP504.

Bottom Line

Ignoring CP504 may lead to more IRS notices and continued collection activity. Reviewing the notice promptly can help you better understand what the IRS is saying and what information may apply to your situation.

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice.