What should I do about a CP504 notice?
A CP504 is the IRS notice of intent to levy. If you don't pay or set up a plan, the IRS can take your state refund and start looking for other property, like pay and bank accounts, to levy.
The CP504 is the IRS's reminder that it intends to levy, under tax code section 6331(d). It also says the IRS will start searching for other assets.
The IRS can levy your state tax refund after a CP504. Before it levies most other property, it must send a formal notice of intent to levy and your right to a hearing, like the LT11 or Letter 1058.
The CP504 can also mention passport denial. Seriously delinquent tax debt can keep you from getting or renewing a passport.
Key facts
- The amount owed and the tax years
- Whether a lien has been filed yet
- Any state refund you expect
- Whether you can pay in full now
- Whether you already set up a plan (call anyway to make sure it shows)
Options that may help
Pay the balance online or by mail to stop the levy path.
The Online Payment Agreement tool is the fastest way to get a plan approved.
You can ask for a CAP appeal before collection action, by following the notice.
Results depend on your situation. Not every case qualifies.
Common questions
Is a CP504 the last notice?
It is the IRS's last reminder before levy. For most levies, the IRS must still send a notice with your right to a hearing, like an LT11 or Letter 1058.
What can the IRS take after a CP504?
Your state refund first. Later, wages, bank accounts, business and personal assets, and Social Security benefits.
Sources
General information, not tax or legal advice. You can contact the IRS yourself for free at irs.gov.