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 first reminder that you have a balance due. It outlines:
The amount owed.
Payment options.
Deadlines to respond.
While it may not seem threatening, ignoring it leads to more aggressive action.
CP504: The Final Warning
A CP504 Notice is far more serious. It’s titled “Notice of Intent to Levy” and warns that the IRS may seize your state tax refund or other assets. It also explains your right to appeal.
What Happens If You Ignore Them
Additional penalties and interest.
Escalation to liens or levies.
Possible garnishment of wages or seizure of property.
Steps to Take Immediately
Read the notice carefully – know the amount and deadline.
Don’t ignore it – even if you can’t pay.
Explore resolution options – payment plans, OIC, or CNC status.
Contact a tax professional – before deadlines pass.
Texas-Specific Concerns
While Texas has no state income tax, residents are still subject to federal enforcement. Ignoring IRS letters in Corpus Christi can put bank accounts and wages at risk just like anywhere else.
Why Professional Help Matters
The IRS gives short windows to respond, and missing them reduces your options. Having a professional on your side ensures your rights are protected and negotiations are handled correctly.
COTTS Law in Corpus Christi helps Texans respond to IRS notices like CP501 and CP504. Call today to protect your wages and assets.
