IRS CP504 Notice of Intent to Levy: What It Means and How to Stop It
A CP504 is a serious step up from earlier IRS bills. It means the IRS intends to seize property to collect what you owe. You still have time to stop a levy, but you need to act now.
By the Enrolled Agents and CPAs at A&W Tax Services · Updated
What a CP504 means
The CP504 comes after earlier balance-due notices (usually CP14, CP501 and CP503) went unpaid. It warns that the IRS intends to levy, or seize, your property or rights to property to collect the balance. The IRS can take your state tax refund right away, and the notice says other property can follow.
In most cases a CP504 isn't the last warning before wages or bank accounts are levied. That comes in a separate final notice (LT11 or Letter 1058), which gives you 30 days and the right to a Collection Due Process hearing. But once a CP504 arrives, you're close to that point.
What the IRS can levy
- State tax refunds
- Wages and salary, through a continuous wage levy
- Bank accounts. The bank holds the funds for 21 days before sending them
- Payments from customers, Social Security benefits and retirement accounts
- In some cases vehicles, real estate or other property
How to stop a levy
- Pay the balance in full by the date on the notice
- Set up an installment agreement. The IRS generally won't levy while a payment plan request is pending or in effect
- File any missing returns. The IRS usually won't approve a plan until all required returns are filed
- If paying would cause hardship, request currently-not-collectible status with financial information
- If you disagree with the balance, respond with documents or ask about audit reconsideration
Other consequences to know about
Large unpaid balances can also lead to a federal tax lien, which affects your ability to sell or refinance property. Seriously delinquent tax debts above a threshold the IRS adjusts each year can be certified to the State Department, which can deny or revoke a passport. A payment plan or other resolution generally prevents both.
When to get help
At the CP504 stage, timing matters. An Enrolled Agent with your power of attorney can pull your IRS transcripts, confirm the balance, get missing returns filed and request a payment plan or hold on collection, often in a single call. The earlier we start, the more options you keep.