IRS Notice CP504: Intent to Levy

What does an IRS CP504 notice mean?

A CP504 is a notice of the IRS's intent to levy. It warns that, because your balance remains unpaid, the IRS plans to seize your state income tax refund and may move to levy other assets such as bank accounts and wages. While it is alarming, the CP504 itself authorizes only the state-refund levy; a separate final notice (with formal hearing rights) is generally required before the IRS levies wages or bank accounts.

Why did you receive a CP504?

This notice follows a series of unanswered balance-due reminders. The IRS issues it when routine reminders have failed to produce payment or a payment plan, and it is escalating toward enforced collection.

How to respond to a CP504 notice

Treat this as urgent. Pay in full to stop the process, or immediately establish an installment agreement to halt levy action. If you cannot pay, explore Currently Not Collectible status or an Offer in Compromise. If you disagree with the debt, contact the IRS at once and consider requesting a Collection Due Process hearing once you receive the final levy notice.

What happens if you ignore it?

The IRS can seize your state tax refund right away and will issue a final notice of intent to levy (LTR1058 or CP90) that, after 30 days, allows it to levy wages, bank accounts, and other property. A federal tax lien may attach to everything you own.

Common resolutions

• Pay in full immediately
• Set up an installment agreement
• Request a Collection Due Process hearing

Related IRS notices

• CP503 — Second Reminder of Balance Due
• CP504B — Intent to Levy — Passport Certification
• LTR1058 — Final Notice of Intent to Levy (CDP)
• CP90 — Final Notice — Intent to Levy (CDP Rights)