IRS CP504 Notice: What It Means & Your Options

A CP504 is the IRS telling you it intends to levy certain property, often a state tax refund, to collect an unpaid balance. It usually follows earlier notices like CP14, CP501, and CP503. Many people with a CP504 still have options.

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What a CP504 Usually Means

• You have a balance due and earlier notices went unpaid or unanswered.
• The IRS can levy your state tax refund and may move toward other levies.
• Penalties and interest can grow every day until the balance is paid.
• The next notice is often LT11 or Letter 1058 (final notice of intent to levy and your right to a hearing).

What the IRS Typically Wants

Payment in full by the date on the notice, or contact with the IRS to set up a payment plan.

Options That Often Exist

• Pay in full, or pay the amount you can now to slow the growth of interest.
• A payment plan (installment agreement).
• Penalty relief, if you qualify (for example, first-time abatement).
• Currently Not Collectible status if you truly can't pay.
• An Offer in Compromise in limited cases.
• Filing any missing returns first, which is often required before any plan.

Facts and circumstances vary. Get a written review of your specific case.

How We Can Help

• $249 Notice Review: a written review of your CP504 by a tax professional experienced at negotiating with the IRS, with a plain-English next step. It's credited toward the $599 or $799 Assessment within 30 days.
• IRS Situation Assessment ($599): a written review of your IRS tax records, with recommendations.
• Do you have a deadline? Start a Rush Assessment ($799).

FAQ

Will the IRS Take My Paycheck Now?

Usually not yet. A CP504 typically comes before wage levies, and the IRS usually sends an LT11 or Letter 1058, which explains your right to a hearing, first.

Can I Still Set Up a Payment Plan?

Usually yes. Payment plans are often available at this stage, and filing any missing returns is typically required first.

Is a CP504 the Last Notice?

Usually not. The date on the notice still matters, so it helps to review your options before then.

Related: IRS notices · CP14 Balance Due Notice · CP501 Reminder Notice · CP503 Second Reminder Notice · IRS payment options · IRS Letter Decoder

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