IRS & Tax Notices

What Is an IRS CP504 Notice?

In one sentence

A CP504 is a final balance-due warning — it says that if you don’t pay, the IRS intends to levy (seize) your state tax refund and can move toward levying other assets. It’s near the end of the notice sequence, so it’s the one to act on fast.

If you’ve received a CP504, earlier notices (CP14, CP501, CP503) likely went unanswered. This one is more urgent — but you still have options if you act now.

Why you got one

A CP504 follows unpaid earlier notices. It signals the IRS is escalating from reminders to collection: the immediate threat is your state income-tax refund, with a federal levy on wages and bank accounts as the next step if you stay silent.

The parts that matter

On a CP504, focus on:

The total now due — tax plus accumulated penalties and interest — larger than earlier notices.
The levy warning — states the IRS intends to seize your state refund and may levy other property.
The deadline to act — pay or arrange a resolution by this date to stop the levy process.
Your appeal/relief options — references to payment plans and your right to a hearing in some cases.

A CP504 is urgent but not the absolute last step

Before levying most assets the IRS must send a Final Notice of Intent to Levy with your right to a Collection Due Process hearing. Don’t wait for it — resolving at the CP504 stage is far easier.

What to do now

Don’t ignore this one. If you can pay, pay immediately to stop escalation. If you can’t, set up an installment agreement or ask about other relief, and contact the IRS at the number on the notice before the deadline. If the balance is wrong, dispute it right away with records.

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Common questions

Can the IRS take my money right after a CP504?

A CP504 specifically allows seizing your state tax refund. For wages and bank accounts, the IRS generally must first send a Final Notice of Intent to Levy with hearing rights — but you should resolve it now rather than rely on that gap.

What’s the difference between CP504 and CP14?

CP14 is the first, routine balance notice. CP504 is near the end of the sequence — a levy warning. The urgency and consequences are much higher.

I can’t pay. What are my options?

Installment agreements, and in some cases an offer in compromise or temporary hardship status. Contact the IRS before the deadline; arranging any resolution generally pauses collection.