IRS collections can start 30 days after final notice

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IRS Notices

CP504 Explained

CP504 Notice from IRS: What It Means & What to Do

A CP504 notice is generally an IRS notice of intent to levy on certain state tax refunds or other property, depending on the account. Review the notice, balance, dates, and response instructions carefully.

If you've received a CP504, review the notice date, balance, and response instructions carefully; the exact collection stage depends on your account and notice history.

What Is a CP504 Notice?

  • Collection notice: CP504 explains that levy consideration may follow if the account remains unresolved
  • Affects bank accounts and wages: The IRS can freeze your bank account completely or garnish your paycheck
  • Review response instructions: The notice explains applicable response options and dates; a CDP hearing deadline generally appears on a Final Notice of Intent to Levy, not every CP504
  • Action required: Do not ignore the notice; review the balance, dates, and available response options before deciding what to do next

What Does CP504 Mean?

A CP504 is generally a notice of intent to levy on certain state tax refunds or other property, depending on the account. It is not the same as the Final Notice of Intent to Levy and does not, by itself, establish a universal 30-day deadline for every collection action.

A CP504 is an important collection notice, but it is not the same as the Final Notice of Intent to Levy. Read the notice itself for the specific action, response instructions, and dates that apply to your account.

Why You Receive CP504

  • You owe back taxes and haven't responded to previous IRS notices
  • Your payment plan (if any) has failed or expired
  • The IRS believes collection action is necessary
  • You haven't made arrangements to pay your tax debt

Review the 30-Day Response Window

Your Timeline

Use the notice date and response instructions as your starting point. The timing and type of collection action depend on the notice and your account; a bank levy and wage levy follow different procedures.

Follow the dates printed on your notice.

If You Request a Hearing

CDP hearing rights and deadlines generally attach to a Final Notice of Intent to Levy, such as Letter 1058 or LT11. Check your notice for the specific hearing instructions and deadline that apply.

If the Date Passes

The IRS may continue collection activity according to the notice and account status. Review the notice and seek guidance on the response options that remain available.

Your Rights & Options After CP504

Request a Collection Due Process Hearing

A CDP hearing request generally relates to a Final Notice of Intent to Levy, such as Letter 1058 or LT11. Check the notice for the exact deadline and instructions. If applicable, a timely request can provide a formal review process:

  • Challenge the debt amount
  • Request a payment plan
  • Request a hold on collections
  • Explore other resolution options

Request a Payment Plan

You can propose an installment agreement with the IRS. A payment plan does not eliminate the debt. Whether it changes collection activity depends on the agreement, account, and continued compliance with its terms.

Request Currently Not Collectible (CNC) Status

If you're experiencing severe financial hardship, you may request CNC status. This may temporarily suspend active collection while the IRS periodically reviews your case. Interest and penalties continue to accrue.

Request an Offer in Compromise

An Offer in Compromise may allow an eligible taxpayer to settle for less than the full amount owed. Eligibility, required financial information, and IRS approval all apply; it is not available in every case.

What You Should Do Now

  1. 1

    Don't Ignore It

    Do not ignore CP504. Review the notice, verify the balance and dates, and follow the response instructions that apply to your account.

  2. 2

    Contact the IRS (or Get Help)

    Call the IRS or work with a tax professional to request a hold on collections while you arrange payment or explore options.

  3. 3

    Request a CDP Hearing

    If your notice provides CDP rights, follow its instructions and deadline. A tax professional can help identify whether that process applies.

  4. 4

    Act Today

    Promptly review the notice and the account status. The consequences of delay depend on the notice and collection stage.

Need Immediate Help?

We can review your notice and, when appropriate, help communicate with the IRS about possible collection options. Outcomes and timing depend on your situation.

Review My Options

No obligation. We will review your case and contact you.

Call (213) 468-6170