Notice CP504 - Intent to Levy
IRC Section: IRC § 6331
Response Deadline: 30 days
The IRS is about to take your state tax refund — and your bank account may be next. A CP504 is the warning shot. It means your case has been sent to the collection unit, and if you don't act, the next letter (LT11) authorizes them to seize your wages and drain your bank account. You are not at the point of no return yet, but you are one step away.
A CP504 — Notice of Intent to Levy — means your unpaid tax account has been referred to the IRS Automated Collection System (ACS). It warns that the IRS intends to seize your state tax refund and may levy other assets if the balance isn't resolved. This is several steps into the collection sequence (CP14 → CP501 → CP503 → CP504 → LT11). The CP504 is the last automated notice before the LT11 final notice. At this stage, the IRS can already take your state tax refund. Federal levies (bank accounts, wages) require one more step — the LT11 — but you are close to that line.
Common Triggers
- CP14, CP501, and CP503 notices ignored or undelivered
- Unpaid balance due with no installment agreement in place
- Defaulted payment plan
- Multiple tax years with outstanding balances
- State tax refund offset already in effect
Resolution Steps
- Step 1: Check the amount on the notice against prior notices (CP14, CP501, CP503) — is this the first time you're seeing it, or has it been escalating?
- Step 2: If you can pay in full, do so immediately at IRS.gov/payments — this stops all further collection
- Step 3: If you cannot pay in full, request an installment agreement or submit an Offer in Compromise
- Step 4: Request a Collection Due Process (CDP) hearing if you want to dispute the debt or propose an alternative
- Step 5: Do not ignore a CP504 — the next notice (LT11) is the final stop before enforced bank and wage levies
Common Questions About CP504
- Why did I get a CP504 before an LT11?
- The CP504 is an automated notice that comes before the LT11 final notice. It's the IRS telling you: 'We are ready to levy your state refund, and if you don't respond, we'll do more.' The LT11 is the formal legal notice that precedes federal levies. The sequence is: CP14 (bill) → CP501 (reminder) → CP503 (urgent reminder) → CP504 (intent to levy state refund) → LT11 (final notice, federal levy authorization).
- Will the IRS really take my bank account over a CP504?
- Not yet — but they will after the LT11, which is next in the sequence. The CP504 allows them to take your state tax refund. Federal levies on bank accounts and wages require the LT11 final notice. If you received a CP504, you have a short window to act before the LT11 arrives. Once the LT11 is issued and 30 days pass, bank levies and wage garnishments can begin.
- What if I filed for bankruptcy? Does the CP504 still apply?
- If you have an active bankruptcy case, the automatic stay generally prohibits the IRS from levying. However, the IRS can still send notices during bankruptcy. If you received a CP504 during an active bankruptcy, notify your bankruptcy attorney immediately and send a copy of the notice to the IRS with your bankruptcy case number. The IRS must confirm the stay is in effect before proceeding.
Related Notices
Additional Resources
This is an enforcement notice — the next move matters
This page explains what the letter is. For what to do — the deadline, the steps in order, and what representation changes — go to the action page on our resolution site: IRS CP504: What To Do Now →
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