CP504 notice of intent to levy: your next moves
- What it is
- Notice of intent to levy
- Type
- Balance and collection
- Your deadline
- "Pay the amount you owe immediately."
- The IRS cannot levy your bank or wages on this notice alone. It must first send a final notice that gives you the right to a hearing.
- To
- You
- From
- Blaga Veleva, EA
- Re
- Notice of intent to levy
A CP504 is the IRS Notice of Intent to Levy under tax code section 6331(d), sent because your balance is still unpaid. The IRS can now seize a state tax refund and file a tax lien. The single most important thing: pay the amount immediately, or call the IRS to set up an arrangement before any wider levy begins.
What does the CP504 notice mean?
It means the IRS has moved from reminders to collection. The notice states: "This notice is your Notice of Intent to Levy as required by Internal Revenue Code section 6331 (d)." It says the IRS intends to levy your state tax refund and will begin searching for other assets to levy. It also explains that a passport can be denied or revoked for seriously delinquent tax debt.
How much time do I have?
Very little. The IRS tells you: "Pay the amount you owe immediately" (irs.gov CP504 page). If you can't pay all of it, pay what you can and contact the IRS about a payment plan.
Cost goes up from here too. The IRS failure to pay penalty page says that if you don't pay within 10 days after a notice of intent to levy, the penalty rises from 0.5% to 1% per month or part of a month.
Can the IRS take my bank account after a CP504?
Not on this notice alone. The IRS Appeals FAQ is direct: "The IRS cannot levy with just this notice. The IRS must first issue a formal Notice of Intent to Levy and Your Right to a Hearing" (CDP FAQs). A state tax refund is the exception the CP504 itself names.
If a balance remains, the IRS can send that hearing notice and then levy wages, bank accounts, business assets, personal assets and Social Security benefits. A bank levy holds the funds for 21 days before they go to the IRS. See how to stop an IRS levy.
What should I do this week?
- Note the notice date and the amount due.
- Check that the balance matches your records and that no payment or agreement is missing from your account.
- If you can pay, pay now. If you can't, pay what you can.
- Call the toll-free number on the notice, or have an Enrolled Agent call, to set up an installment agreement.
- If you disagree with the collection action, ask for a Collection Appeals Program (CAP) appeal before it starts.
- Watch the mail closely for an LT11 or Letter 1058.
How an Enrolled Agent helps with a CP504
An Enrolled Agent works on the account right away, before a levy notice with hearing rights arrives. Using Form 2848, Blaga Veleva, EA can contact the IRS, get the exact balance, and put a payment plan or another collection alternative in place. While an installment agreement request is pending, the IRS is generally prohibited from levying, with certain exceptions, per irs.gov.
She can also request a CAP appeal and confirm that a payment or agreement you already have shows on your account. Her office is on FM 1960 W in Houston, and her secure portal lets anyone in the country send the CP504 for review.
Which notice usually comes next?
The next letter is the formal levy notice with hearing rights, most often the LT11 or Letter 1058, or a CP90. Those letters give you 30 days to request a Collection Due Process hearing. A lien filing brings a separate letter, Letter 3172.
Not in the decoder yet. Read it to us.
Call (281) 785-0460 Send it to us
That does not mean it is unusual. The IRS sends many different notices and letters. Read us the number and the date printed on it, and Blaga will tell you what it is and what it asks you to do.
Check the letters before the number too (CP, LT or Letter), in the top right corner. See every letter in the decoder.
Type the number from the top right corner of your letter, for example CP504 or LTR 1058. No number? Try a word like levy, lien or audit.
Which one is it?
Look at the letters printed just before the number, top right of the first page.
Still not sure? Call (281) 785-0460 and read it to us.
Which letter is it?
The number is in the top right corner of the first page, for example CP14 or LTR 1058. Type it above, tap a common one below, or see every letter the decoder covers.
- What it means
- Your deadline
- If it waits
- How an Enrolled Agent can help
Have Blaga read yours Full guide
Source: irs.gov. This is a plain-English summary, not advice on your case.
Questions people ask
Q1Is a CP504 serious?
Yes. It is the IRS Notice of Intent to Levy. The IRS can already take a state tax refund and file a lien, and the IRS failure to pay penalty page says the penalty rises to 1% a month if you do not pay within 10 days of a notice of intent to levy. It is still early enough to set up a plan.
Q2Can the IRS take my bank account after a CP504?
Not with this notice alone. The IRS says it must first issue a formal Notice of Intent to Levy and Your Right to a Hearing, such as an LT11 or Letter 1058. That letter gives you 30 days to request a hearing.
Q3Does a CP504 affect my passport?
It can. The notice explains that federal law generally bars the State Department from issuing or renewing a passport for a taxpayer certified as having seriously delinquent tax debt.
Q4What should I do after a CP504?
Check the balance, pay what you can, and call the number on the notice to set up a payment plan or ask for a CAP appeal. An Enrolled Agent can make that call for you under Form 2848.
- LT11 and Letter 1058: the final step before a levy
- A second IRS reminder: understanding the CP503
- IRS bank levy: what to do in the next 21 days
- IRS payment plans, set up the right way
- How to stop or pause IRS collection
- CP504B: the IRS intends to levy your business
- Currently not collectible: when you truly cannot pay the IRS