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IRS Notice CP504: Intent to Levy and What It Can Take

By the Tax Relief Answers editors · Sources checked November 3, 2026 · How we check

The short answer

CP504 is the IRS's Notice of Intent to Levy under 26 U.S.C. 6331(d). It lets the IRS take your state income tax refund and file a Notice of Federal Tax Lien. It is not the final notice before your wages or bank account can be levied. The IRS's own Collection Due Process FAQ says: "The IRS cannot levy with just this notice. The IRS must first issue a formal Notice of Intent to Levy and Your Right to a Hearing." That final notice is LT11 or Letter 1058. Sources: IRS, Understanding your CP504 notice and IRS, Collection Due Process FAQs.

What CP504 can and cannot do

The CP504 page lists wages, bank accounts, business assets, your car and home, and Social Security benefits as property the IRS "can then" levy, but only after it has sent a notice giving you a right to a hearing before the IRS Independent Office of Appeals. Under 26 U.S.C. 6330(a), that hearing notice must arrive at least 30 days before the first levy. The exception is your state tax refund, which can be levied on the strength of CP504 alone (26 U.S.C. 6330(f)).

What to do

1. Read the amount and the tax year. If you already paid or already have a payment plan, call the toll-free number on the notice so your account reflects it; the IRS page asks for this.
2. If you can pay, pay now. Interest and the failure-to-pay penalty keep running, and the penalty rises to 1% per month starting 10 days after a notice of intent to levy (IRS failure-to-pay penalty page).
3. If you cannot pay in full, apply online for the IRS payment plan or call the number on the notice. The IRS FAQ says you do not need to wait for the final notice and that it is in your best interest to respond to CP504.
4. If a levy would create hardship, ask for Currently Not Collectible status with your income and expense figures ready.
5. If you disagree with the balance, say so on the call and ask about the Collection Appeals Program.
6. Expect a state refund to be taken if you do nothing. Any balance left after that leads to the next notice.

What this notice does not mean

• It does not mean a wage or bank levy can happen tomorrow. The law requires the hearing notice first, and that notice gives you 30 days to ask for a Collection Due Process hearing with Form 12153.
• It does not give you Collection Due Process rights by itself. That hearing attaches to the LT11, Letter 1058, CP90 or CP297.
• It does not mean the debt has changed; it is the same balance as your CP14, plus interest and penalties.
• It does not mean a payment plan is off the table. The IRS page itself tells you to ask for one.

A Low Income Taxpayer Clinic can represent you at this stage for free if you qualify. A paid company does nothing at this stage that you cannot do with one call; if you do consider paying someone, verify the credential first.

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