IRS Notices Explained: What to Do When You Receive a CP501 or CP504
Why IRS Notices Cause Panic If you’ve ever opened your mailbox in Corpus Christi to find a notice from the IRS, you know the sinking feeling that follows. Two of the most common notices are the CP501 and CP504, and both require urgent attention. CP501: The Friendly Reminder A CP501 Notice is usually the IRS’s […]
What Should I Do if I Can’t Afford to Pay the IRS in Texas?
If you owe the IRS but truly can’t afford to pay, you may qualify for Currently Not Collectible (CNC) status. This program doesn’t erase your tax debt, but it does stop IRS collection efforts — including wage garnishments, levies, and aggressive letters — as long as you remain financially unable to pay. The IRS reviews […]
Ignoring IRS Notices: A Legal Risk You Can’t Afford
An IRS notice is more than a simple letter — it’s an official warning backed by the government’s legal authority. If you ignore it, you may be waiving opportunities to challenge errors, set up payment arrangements, or prevent enforcement actions. The IRS follows a sequence: initial letters explain the issue, but if there’s no response, […]
Facing an IRS Bank Levy? Here’s What You Need to Know
An IRS bank levy isn’t a surprise attack. Long before the money leaves your account, the IRS has sent notices, assessed your balance, and given you the chance to respond. If they proceed anyway, it’s because they believe you’ve ignored or refused to resolve the debt. Once issued, the levy forces your bank to freeze […]
The Truth About IRS Penalties — And How to Get Them Removed
The IRS issues penalties for a wide range of reasons — late filing, underpayment, failure to deposit payroll taxes, and more. These penalties often feel automatic, and many taxpayers assume they’re final. But the reality is, many penalties can be reduced or removed with the right legal strategy. At COTTS Law, Attorney Daniel Cotts helps […]
How to Successfully Navigate a Tax Audit: A Legal Perspective
An IRS audit is a legal proceeding — even when it starts with a simple letter. That means protecting your rights, preparing carefully, and responding strategically are essential. At COTTS Law, Attorney Daniel Cotts brings decades of experience to representing clients facing audits, appeals, and tax disputes. Here’s how we approach audits from a legal […]
IRS Asset Seizure: Understanding the Process and Protecting Your Property
For taxpayers who owe significant back taxes, the most frightening letter from the IRS is often the one that warns of asset seizure. This is not just a hollow threat — the IRS has broad powers to take physical property and sell it to pay off delinquent tax debt. Knowing how this process works — […]
What to Do If You Owe the IRS More Than $10,000
When your IRS tax debt climbs above $10,000, the pressure can start to feel unbearable. For many individuals and business owners, this marks a tipping point—where interest and penalties pile on quickly and the threat of enforcement action becomes very real. But here’s the good news: the IRS has programs to help, and you have […]
When You Can’t Pay the IRS: Understanding Currently Not Collectible Status
There are times when taxpayers simply can’t afford to pay what they owe the IRS. Whether it’s due to job loss, illness, or overwhelming monthly expenses, the IRS recognizes that pursuing aggressive collection efforts in these situations may do more harm than good. That’s where Currently Not Collectible status—also known as CNC—comes into play. At […]
How Long Can the IRS Collect on Your Tax Debt?
When you’re dealing with unresolved tax debt, one of the most common questions is whether the IRS can pursue it forever. It’s a fair concern. The idea that a tax issue from a decade ago could still be lingering in the background is unsettling—but there are time limits, and understanding them could make all the […]