IRS notice CP504
CP504 notice: the IRS intends to levy
A CP504 is your Notice of Intent to Levy under section 6331(d) of the tax code. It is the IRS’s final reminder that it intends to levy your wages, bank accounts or state tax refund for an unpaid balance, and that it will start looking for other assets. It asks you to pay immediately.
What the IRS can do next
It can seize any state tax refund you are due. If a balance remains after that, it may send you a notice giving you the right to a hearing before the IRS Independent Office of Appeals, if you have not already received one, and can then levy or take other property or rights to property.
It can also file a Notice of Federal Tax Lien, if it has not already, which publicly establishes its priority with your creditors, can make it hard to sell or borrow against your property, and can harm your credit rating.
- Wages, real estate commissions and other income.
- Bank accounts.
- Business assets.
- Personal assets, including your car and home.
- Social Security benefits.
Passports
The CP504 also explains passport denial and revocation. Under the FAST Act, the State Department is generally prohibited from issuing or renewing a passport for a taxpayer with seriously delinquent tax debt, and the IRS has more on how that certification works at IRS.gov/passports.
What to do
Pay the amount on the notice immediately, online or by mail with the bottom part of the notice. If you cannot pay it all, pay what you can now and contact the IRS right away at the number on the notice to see whether you qualify for a payment plan; the IRS calls its online payment agreement tool the fastest way to get one approved.
You can request an appeal under the Collection Appeals Program before collection action is taken, by following the notice’s instructions. If you disagree, or have already paid or set up an installment agreement, call the number on the notice anyway so your account reflects it.
Returns to file before you can set up a plan?
The IRS generally wants every required return filed before it agrees to a long-term payment plan, and a notice can be the first sign that a year is missing. USTAXX prepares current and past-due returns, one year at a time, so the account is complete. We are an IRS Authorized e-file provider and work with clients remotely through a secure portal, by phone or video, and in person at our office in Naperville, IL.
Questions people ask
What does a CP504 mean?
That the IRS intends to levy your wages, bank accounts or state tax refund to collect an unpaid balance, and will start looking for other assets. It is the Notice of Intent to Levy under section 6331(d).
Can the IRS take my paycheck after a CP504?
The CP504 lets it seize a state tax refund. To levy other property such as wages or bank accounts, the IRS may first send a notice giving you the right to a hearing before its Independent Office of Appeals, if you have not already received one.
Can a CP504 affect my passport?
It can. The FAST Act generally prohibits the State Department from issuing or renewing a passport for a taxpayer with seriously delinquent tax debt.
What should I do if I cannot pay in full?
Pay what you can now and contact the IRS immediately about a payment plan; the online payment agreement tool is the fastest route.
Where these rules come from
- IRS: Understanding your CP504 notice
- IRS: Publication 594, The IRS Collection Process
- IRS: Publication 1660, Collection Appeal Rights
- IRS: Revocation or denial of passport in cases of certain unpaid taxes
General information, current when written, not advice about your situation. Fees and forms change; the official pages above are the authority.