IRS CP504
Intent to Levy Notice
The IRS is warning you they may levy your state refund. Act before enforcement expands.
Deadline
30 days from the notice date
After 30 days the IRS can seize your state tax refund and begin escalating to full enforced collection — wages, bank accounts, and more.
Act within days — enforcement is imminent or already in progress.
CP504 is an Urgent Notice of Intent to Levy, the fourth notice in the collection sequence (after CP14, CP501, CP503). It confirms an unpaid tax debt and warns that the IRS is about to begin enforced collection, often by seizing a state tax refund, and is the final step before the high-urgency notices like Letter 1058 and CP90 are issued.
What IRS CP504 Means
The IRS sends a CP504 to warn you that they may levy (take) your state refund and begin enforced collection. At this point, the IRS has already sent CP14, CP501, and CP503 without receiving payment.
What the IRS can levy after CP504: your state tax refund and future federal refunds. These can be intercepted without further warning once the 30-day window expires.
What the IRS cannot levy yet at the CP504 stage: wages, bank accounts, and Social Security. Those require the next notice — CP90/LT11 (Final Notice of Intent to Levy) — which triggers full Collection Due Process rights.
What the IRS Can Do If You Don't Respond
- Intercept your state tax refund immediately after the 30-day window expires
- Offset future federal tax refunds against the balance owed
- Issue CP90 / LT11 — Final Notice of Intent to Levy — authorizing wage and bank levies
- File a Notice of Federal Tax Lien against your property
- Assign your case to a Revenue Officer for accelerated collection
What You Should Do Right Now
- 1
Do not ignore this notice — the 30-day deadline is real and non-negotiable
- 2
Verify the balance is correct — math errors and misapplied payments happen
- 3
Do not call the IRS without professional representation — anything you say can be used to accelerate collection
- 4
Contact a tax professional immediately to evaluate your resolution options
- 5
If you cannot pay in full, request a Collection Due Process (CDP) hearing, installment agreement, or evaluate Offer in Compromise eligibility
- 6
If there is a hardship, request Currently Not Collectible (CNC) status to stop collection
- 7
Gather your last 3 years of tax returns and financial statements before your consultation
Resolution Options Available to You
Settle the debt for less than the full amount owed if you qualify
Set up a structured monthly payment plan with the IRS
Temporarily halt all collection action if you have no ability to pay
Remove or reduce penalties that are inflating your balance
Stop or reverse IRS levies already in motion
Frequently Asked Questions About IRS CP504
What happens if I ignore CP504?
The IRS will seize your state tax refund within days of the 30-day deadline. After that, bank levies and wage garnishment can begin without any additional notice. Ignoring CP504 is the fastest path to enforcement.
Can I stop a levy after receiving CP504?
Yes — but only if you act before the levy is executed. Requesting a Collection Due Process (CDP) hearing immediately suspends levy action while your case is reviewed. A tax professional can file this on your behalf.
Does CP504 mean I'm being audited?
No. CP504 is a collection notice, not an audit notice. It means you have an outstanding balance that has gone unpaid through earlier notice stages.
Can I negotiate after getting CP504?
Absolutely. The IRS strongly prefers resolution over enforcement. An Offer in Compromise, installment agreement, or hardship status can all be negotiated — but time is critical.
How much can the IRS take from my paycheck?
The IRS can take most of your paycheck, leaving only a small exempt amount based on filing status and dependents. Unlike creditor garnishments, IRS levies are not capped at 25%.
Professional References
IRC: IRC §6331 — Levy and Distraint; IRC §6330 — CDP Rights
IRM: IRM 5.19.1 — Balance Due
Got IRS CP504? Let's Resolve It.
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