IRS Notice CP504
Intent to Levy Notice
This is a final notice before the IRS seizes your assets. They intend to levy (take) your state tax refund and may seize other assets.
Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court
Notice CP504 in Plain English
CP504 is the IRS's threat to seize your state tax refund and start pulling other assets. It is not the final legal notice before a levy (that's LT11/CP90), but for most people it may as well be — because once the sequence gets this far, the next letter allows wage garnishment.
Why the IRS sent you a CP504
Three prior notices (CP14, CP501, CP503) have gone unanswered or unresolved.
The IRS's collection system has advanced your case to the pre-levy stage.
A previously negotiated installment agreement defaulted without being reinstated.
What Happens If You Ignore Notice CP504
The IRS can seize your state tax refund, bank accounts, wages, and other property. This is serious.
Every day you wait, penalties compound, interest accrues, and your options shrink. The IRS does not negotiate well with silence — they escalate.
What To Do About Notice CP504
Act immediately. Call us to discuss options like installment agreements, currently not collectible status, or offer in compromise.
- 1
Treat this as a 30-day deadline before real assets are at risk, even though the strictest levy authority arrives with LT11.
- 2
Immediately file Form 9465 (IA), 656 (OIC), or 433-F requesting CNC — any acceptable proposal in-hand pauses further escalation.
- 3
If your state refund is pending, expect it to be intercepted; do not spend it before it lands.
- 4
Pull an updated wage and income transcript so you know exactly what the IRS knows about your assets — most levy sources come straight from that transcript.
- 5
If financial hardship is real, gather documentation now (rent/mortgage, utilities, transportation, health) — CNC requires proof, not assertions.
A Senior Tax Attorney's Take on CP504
CP504 is often the notice that convinces a client to finally hire counsel. That's a mistake in one direction — sooner would have been cheaper — but not fatal. There is still a 30-day runway before LT11 arrives, and every acceptable resolution filed inside that window blocks the next notice.
Call (877) 829-5267Costly Mistakes People Make With Notice CP504
Assuming the 'state refund' language means the IRS can only take a state refund — CP504 authorizes the IRS to seize other federal payments too.
Rushing to pay the balance in full from a retirement account without checking early-withdrawal tax cost first.
Signing an installment agreement so aggressive it defaults in month two, dropping you straight to LT11.
IRS Notices Related to CP504
These are the notices the IRS most often sends before, after, or alongside a CP504. Read the related ones to understand where you are in the collection sequence.
Tax Resolution Services That Resolve a CP504
Senior tax attorneys at McCauley Law Offices use these strategies to stop, settle, or unwind a CP504 notice.
Stop the IRS from seizing funds from your bank accounts.
Stop IRS wage levies that are taking money from your paycheck.
Set up manageable monthly payment plans to pay off your tax debt over time.
Settle your tax debt for less than what you owe through IRS settlement programs.
Primary Sources & Authority
We cite the underlying IRS publications and statutes so you can verify everything on this page.