CP504: a serious collection notice and how to respond
A CP504 is an IRS collection notice about an unpaid balance that the IRS describes as a notice of intent to levy, including a state tax refund. Respond promptly using the number on the notice: pay, ask about a payment plan, or call if you disagree or already paid.
Where CP504 sits in the sequence
Balance-due notices usually arrive as a series. A CP14 is the first bill. A CP501 is a reminder that a balance remains unpaid, and a CP503 is a second reminder. The CP504 follows when earlier notices got no payment or response, and the IRS page calls it a final reminder of an unpaid balance.
The earlier two reminders mention a lien. A CP503 warns that the IRS may file a Notice of Federal Tax Lien, a public notice of the government's claim on your property that can affect credit. The CP501 and CP503 pages also say you may request an appeal under the Collection Appeals Program before collection action, by following the instructions on the notice.
What the CP504 itself says
The IRS page for CP504 describes it as a Notice of Intent to Levy. It says the IRS intends to levy wages, bank accounts and any state tax refund, will begin looking for other assets, and may also file a Notice of Federal Tax Lien. It mentions that seriously delinquent tax debt can affect a passport. It does not state a day count for your response.
If a state tax refund is levied and a balance remains, the page says you may receive a notice giving you a right to a hearing with Appeals if you have not already had one.
Two IRS pages that read differently
It is worth knowing that the IRS pages are not perfectly consistent here. The CP504 page treats the notice as an intent to levy and mentions the Collection Appeals Program. The IRS page on Collection Due Process says a CP504 is not itself the final notice and that a separate final notice, Letter 1058 or LT11, carrying hearing rights must come before most levies.
You do not need to decide which description is right. Your own notice and any later letters control. The practical takeaway is the same in both readings: do not wait for the next notice to deal with this one.
What to do now
Pick the item that matches your facts:
- Can pay in full: pay right away using the instructions on the notice.
- Can pay part: pay what you can and ask about a payment plan. The IRS describes the online payment agreement tool as the fastest route, and Form 9465 is the written request form.
- Disagree with the balance: call the number on the notice and have your records ready.
- Already paid, or already in a plan: still call and confirm the account shows it. Records sometimes lag behind payments.
Costs while the balance stays open
Interest keeps building on unpaid tax and penalties, and the late-payment penalty continues. The IRS says the monthly penalty rate can rise after a notice of intent to levy, so check the IRS penalty page for the current rate rather than assuming. Paying even part now lowers what these charges build on.
Keeping a record
Whatever you choose, write down the date, the name or ID of the person you speak to, and what was agreed. Follow up with a short letter confirming it if the call leaves anything unclear. IRS Audit Defense Pro is software that helps you organize your facts and draft a response letter you review and send yourself; it is not a law firm, CPA or enrolled agent. It can turn your notes into a clear confirmation letter that you check and mail yourself.
Getting help
You can authorize a representative with Form 2848. The Taxpayer Advocate Service is an independent office within the IRS that helps people with collection problems. Neither is required to respond to this notice.
Ready to respond?
Upload your IRS notice, answer a few questions, review the analysis and response strategy, fill in your details, and get a response letter you can copy or download as a PDF or DOCX file.
Start your response letterFrequently asked questions
Is a CP504 the last notice before a levy?
The IRS pages describe this differently. Check your notice. Either way, the IRS says to respond promptly, and later final notices carry formal hearing rights with deadlines printed on them.
Can the IRS take my state refund?
The CP504 page says the IRS intends to levy a state tax refund. If that happens and a balance remains, you may get a notice with a hearing right if you have not already had one.
What is the difference between CP501, CP503 and CP504?
CP501 is a reminder, CP503 is a second reminder, and CP504 is described as a final reminder and notice of intent to levy. All concern an unpaid balance.
Will a payment plan stop collection?
The IRS says it generally does not start a new levy while a plan is pending or in effect. Penalties and interest continue until the balance is paid.
What if the notice is wrong?
Call the number on it and explain, with records. If a phone call does not resolve it, a written response with copies of your documents is a reasonable next step.