What a CP504 means
The IRS describes the CP504 as its notice of intent to levy under section 6331(d) of the tax code. In plain terms: the balance has been billed and reminded, it's still unpaid, and the IRS is now preparing to collect it by taking property.
What the IRS can do after a CP504
| Action | After a CP504? |
|---|---|
| Take your state income tax refund | Yes. This is the main action the CP504 warns about. |
| File a Notice of Federal Tax Lien | Yes, if one hasn't already been filed. |
| Levy wages, bank accounts and most other assets | Generally only after the final notice (LT11 or Letter 1058) and the 30-day hearing window that comes with it. |
Don't wait for the final notice. The CP504 is usually the last notice before the IRS sends its final levy warning. Once that letter arrives, you have 30 days to protect your hearing rights.
Other consequences to know about
Passport certification
If your total balance is above the IRS's "seriously delinquent tax debt" threshold, which is adjusted each year, and the IRS has filed a lien or issued a final levy notice, it can certify the debt to the State Department. That can lead to a passport being denied or revoked. A payment plan or pending Offer in Compromise generally prevents or reverses certification.
Federal payments
After the final notice, the IRS can also take part of certain federal payments, including up to 15% of Social Security benefits.
Your options
At this stage, the most common paths are an installment agreement, penalty abatement on top of a plan, currently not collectible status for people in hardship, and an Offer in Compromise for those who truly can't pay the balance within the collection period. See all resolution options.
Work with a tax resolution firm like ours
Once a CP504 arrives, the next notice starts a 30-day clock. Working with a firm now means someone is tracking that deadline and negotiating for you before enforcement against wages and bank accounts becomes possible.
What we handle for you:
- Confirm every balance and year, and check whether a lien has been filed
- Get any unfiled returns done so that we can attempt a resolution with the IRS
- Negotiate an installment agreement, hardship status or an Offer in Compromise, whichever genuinely fits
Your consultation is free, your fee is quoted in writing before any work starts, and if you don't need us, we'll tell you.
Questions about the CP504
Is the CP504 the final notice?
It's often called a final notice, but it's not the last one. The IRS still has to send a Final Notice of Intent to Levy (LT11 or Letter 1058), with a 30-day window to request a hearing, before it can levy wages, bank accounts and most other assets.
Can the IRS take my paycheck after a CP504?
Generally not yet. A wage levy normally comes after the final notice (LT11 or Letter 1058) and its 30-day hearing window. The CP504 lets the IRS take your state income tax refund.
Can I still get a payment plan after a CP504?
Yes. An approved installment agreement generally stops levy action as long as you stay current. You'll usually need all required returns filed first.
Can I appeal a CP504?
The CP504 doesn't carry Collection Due Process hearing rights; those come with the final notice and with a lien filing notice. You can still call the IRS if you disagree with the balance, and the Collection Appeals Program may be available in some cases.
Does a CP504 affect my passport?
It can contribute. If your balance exceeds the annually adjusted seriously delinquent threshold and the IRS has filed a lien or issued a final levy notice, it can certify the debt to the State Department. A payment plan generally prevents certification.