If you're holding a CP504, the situation has escalated. This is not a reminder. It is the final notice before the IRS begins collection enforcement — specifically, seizing your state tax refund and potentially your other assets. Read every word below before you do anything else.
What Is a CP504?
The CP504 is the IRS's Final Notice of Intent to Levy — technically called a "Notice of Intent to Seize (Levy) Your State Tax Refund and/or Other Property." It is sent by certified mail, meaning the IRS has documented proof you received it.
It means:
- You ignored two or more earlier notices (CP14, CP501, CP503)
- The IRS is legally authorized to take enforcement action
- Your state tax refund can be intercepted immediately
- Your wages, bank accounts, and other assets can be seized after 30 days
What Can the IRS Actually Take?
Once you receive a CP504, the IRS can seize:
- State tax refunds — immediately, without additional warning
- Bank account funds — after serving a levy on your bank
- Wages — a continuous wage levy takes a portion of every paycheck
- Social Security benefits — up to 15% can be levied
- Accounts receivable — if you're self-employed
- Real property — in extreme cases, with a court order
Your 30-Day Window
The CP504 gives you approximately 30 days before the IRS escalates to a formal Notice of Intent to Levy (CP90/LT11), which triggers your right to a Collection Due Process (CDP) hearing. After a CDP hearing request deadline passes, options narrow significantly.
Use these 30 days.
What to Do Right Now
Option 1: Pay in Full
Go to IRS.gov/payments. This is the fastest way to end the matter. Once the balance is paid, the levy threat disappears.
Option 2: Request an Installment Agreement
Apply at IRS.gov/opa (Online Payment Agreement). If you owe less than $100,000, you can often get approved instantly without calling. A plan won't stop the state refund intercept, but it halts wage and bank levies.
Option 3: Request Currently Not Collectible Status
If you genuinely cannot pay due to financial hardship, call the IRS. They may temporarily pause collection while you stabilize — though interest and penalties continue.
Option 4: File an Offer in Compromise
If you can never realistically pay the full balance, an OIC lets you settle for less. The application process takes months — you need to start now, not later.
Option 5: Request a Collection Due Process Hearing
If you believe the IRS made an error or you want to challenge the levy, you can request a CDP hearing. This legally pauses collection activity while your case is reviewed. You must request it before the deadline on the notice.
Should You Get a Tax Professional?
At the CP504 stage: yes, if the amount is significant. An Enrolled Agent (EA), CPA, or tax attorney can negotiate directly with the IRS, request holds, and often resolve large balances faster than individuals can on their own.
If the balance is under $5,000 and you have the ability to pay, you may be able to handle this yourself through IRS.gov.
What Happens If You Still Don't Act
- CP90 / LT11: Notice of Intent to Levy — formal levy rights letter
- Bank levy: Your bank freezes your account for 21 days, then sends the funds to the IRS
- Wage levy: Your employer is served, and a portion of every paycheck goes to the IRS until the balance is cleared
- Federal tax lien: Appears on your credit report and can block home sales/refinances
The Bottom Line
The CP504 is the IRS telling you: this is your last chance to handle this before we handle it for you. The options available to you today are better than anything available next month. Act now.
Upload your CP504 to PaperLens and get a plain-English breakdown of exactly what the IRS is threatening, your specific deadline, and your best next steps. Scan your notice →