IRS Notices
CP504 Explained
A CP504 notice is one of the most serious IRS collection letters you can receive. It signals that the IRS is ready to levy your bank account, wages, or property within 30 days.
If you've received a CP504, you are in the final stages before collection action begins.
The CP504 is the IRS's "Notice of Intent to Levy and Your Right to a Hearing." It's one of the most critical notices the IRS can send because it formally announces that the agency intends to seize your property, bank account, wages, or other assets within 30 days.
Unlike earlier collection notices, CP504 is not a negotiation tool. It's a hard deadline. The IRS has already determined that you owe, they've sent prior notices, and they're now ready to act.
From the date on the CP504 notice, you have 30 days to take action. After 30 days, the IRS can levy your bank account or garnish your wages without further warning.
Do not miss this deadline.
If you request a Collection Due Process (CDP) hearing within 30 days of CP504, the IRS will delay collection action while your case is reviewed. This gives you time to negotiate or request a hold.
The IRS can proceed with levy action immediately. They can freeze your bank account or garnish your paycheck without further notice.
You have the right to request a CDP hearing within 30 days of CP504. This hearing pauses collection action and gives you a chance to:
You can propose an installment agreement with the IRS. A payment plan doesn't eliminate the debt but prevents levy action as long as you stay current.
If you're experiencing severe financial hardship, you can request CNC status. This temporarily pauses collection action for 120 days while interest continues to accrue.
An OIC allows you to settle your tax debt for less than the full amount owed. Approval is difficult but can save significant money.
Ignoring CP504 guarantees levy action. You have 30 days — use this time.
Call the IRS or work with a tax professional to request a hold on collections while you arrange payment or explore options.
If you disagree with the debt or want to explore options, request a Collection Due Process hearing in writing within 30 days.
Time is your only advantage with CP504. Once 30 days pass, the IRS acts immediately.
Our tax professionals can contact the IRS today and request a hold on collections while we review your situation.
No obligation. We will review your case and contact you.
Levies & Garnishment