IRS Notices

IRS Notice CP504: Intent to Levy

The CP504 is one of the most serious notices the IRS sends before taking enforcement action. It notifies the taxpayer that the IRS intends to levy (seize) their state tax refund or other assets to satisfy the unpaid tax debt. This notice follows the CP14 and CP501 in the collection sequence.

What the CP504 tells you

• The tax year, type of tax, and total amount owed
• That the IRS intends to seize your state income tax refund
• That additional levy action (wage garnishment, bank levy) may follow
• A deadline to respond

Why the CP504 is different

The CP14 and CP501 are billing notices and reminders. The CP504 is a threat of enforcement action. After this notice, the next step is typically the LT11 (Letter 1058), which is the final notice before the IRS can levy bank accounts, garnish wages, or seize other assets.

What to do immediately

Do not ignore this notice. You still have options, but the window is narrowing.

• Pay the balance if you can. This stops all collection activity.
• Set up a payment plan. An installment agreement stops levy action as long as you remain in compliance.
• Submit an Offer in Compromise. An OIC application generally pauses collection while the IRS reviews it.
• Request Currently Not Collectible status. If you cannot afford basic living expenses, CNC status halts collection.
• Dispute the balance. If the amount is wrong, contact the IRS at the number on the notice with documentation.

What happens if you do not respond

The IRS will seize your state tax refund and may issue the final notice of intent to levy (LT11 / Letter 1058). After that final notice, the IRS can levy bank accounts, garnish wages, and seize other property without further warning.

This information is for educational purposes only and does not constitute tax, legal, or financial advice. For official guidance, visit IRS.gov.