Tax Relief with Logan Allec, CPA
Do you owe back taxes to the IRS or your state government or have unfiled tax returns? Then this is the podcast for you! Every Monday, Wednesday, and Friday, Logan Allec, CPA — owner of A+ BBB-accredited tax resolution firm Choice Tax Relief — explains exactly how to get tax relief for your back tax debt. Would you like a FREE tax relief consultation with Logan's company, Choice Tax Relief? Schedule your consultation now by calling 866-8000-TAX!
Tax Relief with Logan Allec, CPA
CP504 Notice: What If You Can’t Pay the IRS?
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Owe the IRS at least $10,000 in back taxes? Book a FREE consultation with my team at Choice Tax Relief:
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What should you do if you receive a CP504 notice and can't afford to pay the IRS? In this video, I respond to a question from a low-income college student who says they owe $12,000 and the IRS is showing missing tax returns.
Before choosing a payment plan or an offer in compromise, I explain why you should find out whether the tax balance is correct. I cover substitute for returns, missed deductions and credits, older amended returns, penalty abatement, and possible collection alternatives. I also explain a future-income agreement the IRS may consider in some offer-in-compromise cases.
CHAPTERS
00:00 CP504 notice and a $12,000 tax debt
01:04 Where I would start
01:44 Why does the IRS show missing returns?
02:14 Could a substitute for return explain the balance?
03:26 Amending older returns to reduce unpaid tax
04:41 Reviewing penalty-abatement options
04:57 Moving from liability to collection options
05:20 Offers in compromise and future income
06:24 If an offer in compromise isn't the answer
07:12 Currently not collectible status and partial payments
07:45 Get help with your tax debt
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IMPORTANT CONTEXT
This is a response to an anonymous question, not a Choice Tax Relief client case. The facts have not been independently verified. A missing-return message does not establish that returns were never filed or that the IRS prepared substitute returns.
CP504 is an urgent levy warning. Do not ignore it or assume your wages or bank account are safe; the next steps depend on your notices and account history. An offer in compromise, penalty relief, currently not collectible status, or a partial-payment agreement is not automatic. CNC generally pauses most collection activity but does not erase the debt; interest and applicable penalties continue, and refunds may be applied to the balance.
Reducing an unpaid assessment is different from claiming a refund. Refund deadlines and other limitations still apply. A future-income collateral agreement is case-specific, not a requirement for every student.
SOURCES
CP504 notice: https://www.irs.gov/individuals/under...
Substitute for returns and past-due returns: https://www.irs.gov/businesses/small-...
Offers in compromise: https://www.irs.gov/payments/offer-in...
Hardship collection delay: https://www.irs.gov/businesses/small-...
Standard deduction on an SFR: IRM 4.12.1.25.4
Unpaid-tax abatement and refund distinctions: IRM 25.6.1.10.1 and IRM 25.6.1.10.1.1
Future-income collateral agreements: IRM 5.8.6.2.1
General educational information as of recording, not individualized tax or legal advice. The appropriate approach depends on your tax records and financial circumstances.
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