Most IRS letters are easy to ignore. They arrive quietly, blend in with other mail, and don’t immediately change your day-to-day life. The CP504 notice is different — even though it may not feel urgent at first glance.
Across Pennsylvania, New Jersey, and Maryland, we regularly speak with taxpayers who ignored CP504 because “nothing happened right away.” By the time they reached out, the IRS had already moved into enforcement.
This article explains what CP504 actually means, what the IRS is preparing to do next, and why waiting is one of the costliest mistakes taxpayers make.
What Is an IRS CP504 Notice?
CP504 is formally titled “Notice of Intent to Levy – State Tax Refund.” While the notice references state refunds, its implications go far beyond that.
It signals that:
- The IRS has assessed your tax debt
- Prior notices were sent and ignored
- The account is now eligible for enforced collection
At this point, the IRS has stopped requesting payment and has begun preparing to collect it.
Why CP504 Is a Turning Point
Before CP504, the IRS sends reminder notices meant to prompt voluntary compliance. CP504 represents a shift in posture.
After CP504 expires, the IRS may:
- Garnish wages
- Levy bank accounts
- Seize certain assets
- Enforce federal tax liens
Many taxpayers assume CP504 is “just another warning.” It is not.
How Long Do You Have to Respond?
CP504 typically provides 30 days to respond before enforcement becomes legally permissible.
That window matters. Once it closes:
- The IRS does not need to send additional warnings
- Collection actions may begin without further notice
- Your ability to negotiate from a position of strength is reduced
Can the IRS Really Take Money Without Court Approval?
Yes. The IRS does not need a judge’s signature to levy wages or bank accounts. Federal law grants the IRS that authority once proper notice has been given.
CP504 satisfies that requirement.
Why People Ignore CP504
Common reasons include:
- Confusion over IRS terminology
- Prior notices that didn’t result in action
- Fear of contacting the IRS
- Hope that the problem will “work itself out”
Unfortunately, none of those reasons stop enforcement.
What Options Still Exist at the CP504 Stage?
Even after CP504, resolution options may include:
- Installment agreements
- Currently Not Collectible (CNC) status
- Penalty abatement
- Offers in Compromise
- Appeals or collection holds
The key is acting before levies begin.
The Cost of Waiting
Ignoring CP504 often leads to:
- Sudden wage garnishment
- Frozen bank accounts
- Escalating penalties and interest
- Increased stress and financial disruption
What could have been a controlled resolution becomes an emergency.
When to Seek Professional Help
If you’ve received CP504 and:
- Owe more than $10,000
- Have unfiled returns
- Own a business
- Are self-employed
- Have received multiple IRS notices
Professional representation can stop collections while a strategy is developed.
McCauley Law Offices assists taxpayers throughout Pennsylvania, New Jersey, and Maryland with IRS enforcement, negotiations, and long-term tax resolution strategie
