Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0025

Notice   CP504
Yax Year:   2012
Notice Date   May 1, 2014
Social Security Number 123-45-6789
To contact us   Phone 1-800-829-8374
Your caller ID   685448
Page 1 of 4

As we notified you before, our records show you
have unpaid taxes for the tax year ending
December 31, 2012 (Form 1040). If you don’t call
us immediately or pay the amount due by
May 15, 2014, we may seize (“levy”) any
state tax refund to which you’re entitled and apply
it to the $690,548.19 you owe.
If you still have an outstanding balance after we
seize any state tax refund, we may take posession
of your other property or your rights to property.

Billing Summary
Amount you owed                     $612,548.15
Failure-to-pay penalty                   61,254.82
Interest charges                           16,745.22
Amount due immediately       $690,548.19

What you need to
do immediately

Pay immediately
* Send us the amount due of $690,548.19, or we may seize (“levy”)
your state tax refund on or after May 15, 2014.

BILL SMITH                              Notice    CP504
123 MAIN STREET                   Notice Date May 1, 2014
LOS ANGELES,CA 90026       Soc.Sec.No. 123-45-6789

Payment

* Make your check or money order payable to United States Treasury.
*Write your Social Security Number (123-45-6789), the tax year (2012),
and the form number (1040) on your payment and any correspondence.

Amount due immediately         $690,548.19

Notice   CP504
Yax Year:   2012
Notice Date   May 1, 2014
Social Security Number 123-45-6789
To contact us   Phone 1-800-829-8374
Your caller ID   685448
Page 2 of 4

Pay immediately-continued
* If you can’t pay the amount due, pay as much as you can now and make payment
arrangements that allow you to pay off the rest over time. Visit www.irs.gov and
search for keyword: “tax payment options” for more information about:
– Installment and payment agreements–download required forms or save time
and money by applying online if you qualify
– Automatic deductions from your bank account
– Payroll deductions
– Credit Card Payments
Or, call us at 1-800-829-8374 to discuss your options.
If you think there’s been a mistake
If you’ve already paid your balance in full or think we haven’t credited a payment to
your account, please call 1-800-829-8374, and have your payment information
available to review with us. You can also contact us by mail. Fill out the Contact
information section, detach, and send it to us with any correspondence or
documentation including proof of payment

If we don’t hear from you

* if you don’t pay the amoutn due, we may seize (“levy”) any state
tax refund to which you’re entitled on or after May 15, 2014. This
is your notice of intent to levy as required by Internal
Revenue Code section 6331(d).

BILL SMITH                              Notice    CP504
123 MAIN STREET                   Notice Date May 1, 2014
LOS ANGELES,CA 90026       Soc.Sec.No. 123-45-6789

Contact information

If your address has changed, please call 1-800-829-8374 or visit www.irs.gov.
Please check here if you’ve included any    correspondence. Write your Social Security
number (123-45-6789), the tax year (2012), and the form number (1040) on any
correspondence.
Primary phone        Best time to call        Secondary phone        Best time to call

Notice   CP504
Yax Year:   2012
Notice Date   May 1, 2014
Social Security Number 123-45-6789
To contact us   Phone 1-800-829-8374
Your caller ID   685448
Page 3 of 4

* If you still have an outstanding balance after we seize (“levy”) your
state tax refund, we may send you a notice giving you a right to a hearing
before the IRS Office of Appeals, if you have not already received such a
notice. We may then seize (“levy”) or take possession of your other
property or your rights to property. Property includes:
– Wages, real estate commissions, and other income
– Bank accounts
– Business assets
– Personal assets (including your car and home)
– Social Security benefits
* If you don’t pay the amount due or call us to make immediate payment
arrangements we can file a Notice of Federal Tax Lien on your property
at any time, if we haven’t already done so.
* If the lien is in place, you may find it difficult to sell or borrow against your
property. The tax lien would also appear on your credit report – which may
harm your credit rating – and your creditors would also be publicly
notified that the IRS has priority to seize your property.
* If you don’t pay your tax debt, we have the right to seize (“levy”)
your property.

Penalties

We are required by law to charge any applicable penlaties.

Failure-to-pay

Total failure-to-pay   $61,254.82

When you pay your taxes after the due date, we charge you a penalty of
0.5% of the unpaid amount due per month, up to 25% of the amount due.
Beginning 10 days after we issue this notice, the penalty increases
to 1.0% for each month the amount remains unpaid. We count part
of a month as a full month. (Internal Revenue Code section 6651).
For a detailed calculation of your penalty charges, call 1-800-829-8374.

We understand that circumstances — such as economic hardship,
a family member’s death, or loss of financial records due to natural
disaster — may make it difficult for you to meet your taxpayer
responsibility in a timely manner.
If you would like us to consider removing or reducing any of your penalty
charges, please do the following:
* Identify which penalty charges you would like us to reconsider
(e.g., 2012 late pay penalty).
* For each penalty charge, explain why you believe it should be
reconsidered.
* Sign your statement, and mail it to us.
We’ll review your statement and let you know whether we accept your
explanation as reasonable cause to reduce or remove the penalty
charges.

Continued on back …

Notice   CP504
Yax Year:   2012
Notice Date   May 1, 2014
Social Security Number 123-45-6789
To contact us   Phone 1-800-829-8374
Your caller ID   685448
Page 4 of 4

If you were penalized based on written advice from the IRS we will remove
the penalty if you meet the following criteria:
* If you asked the IRS for written advice on a specific issue
* You gave us complete and accurate information
* You received written advice from us
* You relied on our written advice and were penalized based on that advice
To request removal of penalties based on erroneous written advice from use,
submit a completed Claim for Refund and Request for Abatement (Form 843)
to the IRS service center where you filed your tax return. For a copy of
form or to find your IRS service center, go to www.irs.gov or call
1-800-829-5374

We are required by law to charge interest on unpaid tax from the date the tax
return was due to the date the tax is paid in full. The interest is charged as
long as there is an unpaid amount due, including penalties, if applicable.
(Internal Revenue Code section 6601)

Total interest                                                                        $16,745.22

The table below shows the rates used to calculate the interest on your unpaid
amount due. For a detailed calculation of your interest, call 1-800-829-8374.

Beginning Apr. 15, 2013                                                                        4%

* Visit www.irs.gov/cp504
* For tax forms, instructions, and publications, visit www.irs.gov or
call 1-800-TAX-FORM (1-800-829-3676)
* Review the enclosed IRS Collection Process (Publication 594)
* Generally, we deal directly with taxpayers or their authorized representatives.
Sometimes, however, it’s necessary for us to speak with other people, such as
employees, employers, banks, or neighbors to gather the information we need
about a taxpayer’s account. You have the right to request a list of individuals
we’ve contacted in connection with your account at any time.
* Keep this notice for your records.
If you need assistance, please don’t hesitate to contact us.

Internal Revenue Service
24000 AVILA ROAD
LAGUNA NIGUEL, CA 92677-3405

Department of the Treasury

Date:
    03/28/2014
Social Security or
Employer Identification Number
    123-45-6789
Person to Contact:
    J. SMITH
Contact Telephone Number:
    (949) 389-4200
Employee Identification Number:
    86-9666

CERTIFIED MAIL – RETURN RECEIPT

TAXPAYER NAME
123 MAIN STREET
LOS ANGELES, CA 90066

                                                          Page 1

Letter 1058(DO) (Rev. 10-2008)
Catalog Number: 40488S

Corporate Interest – We charge additional interest of 2 percent if, according to our records, you didn’t make your corporate tax (income, employment taxes, etc.) payments within 30 days after we notified you of the underpayment of tax. This interest begins on the 31st day after we notify you of the underpayment of tax amounts you owe over $100,000, minus your timely payments and credits.

Paying Late – Internal Revenue Code Section 6651(a)(2), (a)(3) and (d)(1)
We charge a late penalty of 1/2 percent of the tax owed each month or part of a month that the tax remains unpaid from the due date, up to a maximum of 25 percent of the tax due. The 1/2 percent increases to 1 percent for each subsequent month or part of a month if the tax remains unpaid 10 days after we issue a notice of intent to levy.

What We Are Going To Do
We may file a Notice of Federal Tax Lien at any time to protect the government’s interest. A lien is a public notice to your creditors that the government has a right to your current assets, including any assets you acquire after we file the lien.

If you don’t pay the amount you owe, make alternative arrangements to pay, or request an Appeals hearing within 30 days from this letter’s date, we may take collection action against your property, or rights to property, such as real estate, automobiles, business assets, bank accounts, and other income.

How To Get Help
If you have recently paid this tax or if you can’t pay it, call us immediately at the telephone number shown at the top of this letter.

The enclosed Publication 594, The IRS Collection Process, at Publication 1660, Collection Appeal Rights, provide more information.

Enclosures:
Copy of this letter
Publication 594
Publication 1660
Form 12153

The table below shows the amount you owe:

Form         Tax      Unpaid Amount         Additional         Additional           Amount You Owe
Number     Period  from Prior Notices     Penalty             Interest

1040         12/31/2010    $295,394.22         $73,848.56         $13,011.51           $382,254.29
1040         12/31/2011    $374,562.14         $93,640.54         $14,991.11           $483,193.79

Internal Revenue Service

Department of the Treasury

Date: 02-14-2014

Number of this Letter: 1153

Person to Contact: L. Heat

IRS Contract Address:
INTERNAL REVENUE SERVICE
9350 E FLAIR DR., 4TH FLOOR
EL MONTE, CA 91731

JOHN TAXPAYER
123 MAIN STREET
LOS ANGELES, CA 90030

IRS Telephone Number:
(626) 312-5046, Ext. 123

For each period you are protesting, if the
proposed penalty amount is:

You should:

$25,000 or less

Send a letter listing the issues
you disagree with and explain
why you disagree. (Small
Case Request)

More than $25,000

Submit a formal Written Protest

                                                            2

Letter 1153(DO) (Rev. 3-2002)
Cat.No. 40545C

1. Your name, address, and social security number;
2. A statement that you want a conference;A statement that you want a conference;
3. A copy of this letter, or the date and number of this letter;
4. The tax periods involved (see Form 2751);
5. A list of the findings you disagreement with;
6. A statement of fact, signed under penalties of perjury, that explains why you disagree and why you believe you shouldn’t be charged with the penalty. Include specific dates, names, amounts, and locations which support your position. Usually, penalty cases like this one involve issues of responsibility and willfulness.  Willfulness means that an action was intentional, deliberate or voluntary and not an accident or mistake.  Therefore, your statement should include a clear explanation of duties and responsibilities; and specifically, your duty and authority to collect, account for, and pay the trust fund taxes.  Should you disagree with how we calculated the penalty, your statement should identify the dates and amounts of payments that you believe we didn’t consider and/or any computation errors that you believe we made.
   NOTE:
   To declare that the statement in item 6 is true under penalties of perjury, you must add the following to your statement and sign it:
   “Under penalties of perjury, I declare that I have examined the facts presented in this statement and any accompanying information, and, to the best of my knowledge and belief, they are true, correct, and complete.”;
7. If you rely on a law or other authority to support your arguments, explain what it is and how it applies.

REPRESENTATION

You may be represent yourself at your conference or have someone who is qualified to practice before Internal Revenue Service represent you.  This may be your attorney, a  certified public accountant, or another individual enrolled to practice before the IRS.  If your representative attends a conference without you, he or she must file a power of attorney or tax information authorization before receiving or inspecting confidential tax information.  Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, may be used for this purpose.  Both forms are available from any IRS office.  A properly written power of attorney or authorization is acceptable.

If your representative prepares and signs the protest for you, he or she must substitute a declaration stating:

1. That he or she submitted the protest and accompanying documents, and
2. Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct.

CLAIMS FOR REFUND AND CONSIDERATION BY THE COURTS
CONSIDERATION BY THE COURTS

If you and the IRS still disagree after your conference, we will send you a bill.  However, by following the procedures outlined below, you may take your case to the United States Court of Federal Claims or to your United States District Court.  These courts have no connection with the IRS.

Before you can file a claim with these courts, you must pay a portion of the tax liability and file a claim for refund with the IRS, as described below.

SPECIAL BOND TO DELAY IRS COLLECTION ACTIONS
FOR ANY PERIOD AS SOON AS A CLAIM FOR REFUND IS FILED

To request a delay in collection of the penalty by the IRS for any period as soon as you file a claim for refund for that period, you must do the following within 30 days of the date of the official notice of assessment and demand (the first bill) for that period:

1. Pay the tax for one employee for each period (quarter) of liability that you wish to contest, if we’ve based the amount of the penalty on unpaid employment taxes; or pay the tax for one transaction for each period that you wish to contest, if we’ve based the amount of the penalty on unpaid excise tax.
2. File a claim for a refund of the amount(s) you paid using Form(s) 843, Claim for Refund and Request for Abatement.
3. Post a bond with the IRS for one and one half times the amount of the penalty that is left after you have made the payment in Item 1.

If the IRS denies your claim when you have posted this bond, you then have 30 days to file suit in your United States District Court or the United States Court of Federal Claims before the IRS may apply the bond to your trust fund recovery penalty and the interest accruing on this debt.