What Is IRS Notice CP504?
IRS Notice CP504 is a Notice of Intent to Levy sent by the IRS when you owe unpaid federal taxes and previous IRS billing notices (like CP14, CP501, CP503) did not resolve the balance. It serves as a final reminder before the IRS may take enforced collection action.
What Does a CP504 Notice Mean?
A CP504 notice means the IRS says you still owe taxes and warns it plans to levy (seize) your state tax refund or other property if you do not address the balance due. This notice satisfies the legal requirement under Internal Revenue Code §6331(d) to notify you of your tax debt and the IRS’s intent to levy.
Why Did You Receive a CP504 Notice?
You receive a CP504 notice when:
- You have a balance due on your federal tax account
- Prior IRS notices (CP14, CP501, CP503) were sent and there was no satisfactory response
- The IRS is preparing for collection action by levying available assets, starting with your state tax refund
Is CP504 the Final IRS Levy Notice?
No. CP504 is serious, but it is not the final levy notice with a right to a hearing. The IRS may levy your state tax refund after CP504 if no action is taken, but broader levy authority (on wages, bank accounts, etc.) typically requires a Final Notice of Intent to Levy and Notice of Your Right to a Hearing (LT11 or Letter 1058).
What Is the Deadline to Respond to a CP504 Notice?
You generally have 30 days from the date on the CP504 notice to respond and make payment arrangements or otherwise resolve the balance before the IRS can levy your state tax refund or proceed with further collection actions.
What Happens If You Ignore a CP504 Notice?
If a CP504 notice is ignored:
- Your state tax refund can be seized and applied to your unpaid taxes
- The IRS may escalate the collection process
- After further notices (like LT11), the IRS may levy other assets, wages, or bank accounts
What Are Your Options After Receiving a CP504?
Common response options include:
- Paying the balance in full
- Setting up a payment plan or installment agreement
- Requesting relief options like hardship status or Offer in Compromise (if eligible)
- Disputing the amount owed with supporting documentation
Which IRS Forms Are Related to a CP504 Notice?
Forms commonly referenced in relation to CP504 notice responses:
- Form 9465 – Request an installment agreement
- Form 433-A / 433-F – Provide financial information for payment plans
- Form 12153 – Request a Collection Due Process hearing (if the case escalates toward final levy)
What IRS Notices Are Similar to CP504?
Notices commonly related to CP504 in the IRS collection sequence:
- CP14 – Initial notice of balance due
- CP501/CP503 – Follow-up notices about balance due
- LT11 / Letter 1058 – Final Notice of Intent to Levy with hearing rights
When Should You Seek Help for a CP504 Notice?
You may need assistance if:
- You have multiple years of unpaid returns
- A state refund or other assets are at imminent risk
- You disagree with the IRS calculation
- You need help negotiating payment arrangements or appeals
Scope Note
This page explains IRS Notice CP504 and general response options. It does not provide legal or tax advice.