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IRS NOTICES

What does an IRS CP504 notice mean?

SHORT ANSWER

A CP504 is a serious "intent to levy" notice — the IRS is warning it may seize your state tax refund and take further collection action. Respond quickly; this is near the end of the notice sequence.

A CP504 is one of the last notices before the IRS can levy. It states the IRS intends to seize your state tax refund and may move to levy other assets or wages if you don’t resolve the balance. Unlike the earlier CP14 or CP501, this one carries real urgency. You can still pay, dispute if it’s wrong, or arrange a payment plan — but the window is closing, and ignoring it leads to actual asset seizure.

What to do, in order

  1. Read the notice and confirm the balance and tax year.
  2. Act quickly — this is an intent-to-levy warning.
  3. Pay in full or set up an installment agreement immediately.
  4. If you disagree, respond in writing with documentation now.
  5. Consider requesting a Collection Due Process hearing if eligible.

Common questions

Is a CP504 the final notice before a levy?

It’s very late in the sequence, but the IRS typically must send a final notice (like an LT11 or Letter 1058) with your right to a hearing before levying most assets.

Can I stop a CP504 levy?

Yes — paying, entering a payment plan, or requesting a Collection Due Process hearing can stop the levy. Acting fast is critical at this stage.

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Main AI explains documents and general legal rights in clear terms. It is not a law firm and does not provide legal advice. Laws vary by state and change over time — verify specifics for your jurisdiction, and consult a licensed professional for advice on your situation.