IRS letters › CP504
Notice CP504
Notice of intent to levy
Serious. The IRS can now take your state tax refund and is preparing to seize other property, such as wages or bank funds.
What it means
After several unanswered bills, the IRS is warning that it will levy. It can start by taking your state income tax refund. After a final notice that gives you hearing rights (an LT11 or Letter 1058), it can levy wages, bank accounts and other assets. Large unpaid debts can also lead to the IRS certifying you to the State Department, which can deny or revoke a passport.
What to do
- Pay the balance or set up a payment plan immediately. Contact the IRS by phone at the number on the notice.
- If paying would leave you unable to cover basic living costs, ask for currently-not-collectible status.
- Get help: a tax professional, a Low Income Taxpayer Clinic, or the Taxpayer Advocate Service (Form 911).
Don't
- Don't move money around to hide it. Talk to the IRS instead. Collection usually pauses while a payment plan request is pending.
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Is it really from the IRS?
The IRS starts contact by mail. A real notice has a notice number and your tax year, and you can see it, with any balance, in your IRS online account. The IRS never demands payment by gift card, crypto or wire transfer, and never threatens arrest. If in doubt, call the IRS using a number from IRS.gov, not one from the letter.
The law behind it
Free help
The Taxpayer Advocate Service is an independent part of the IRS that helps when a problem isn't being resolved (Form 911, or 877-777-4778). Low Income Taxpayer Clinics represent people for free or a small fee, many in Spanish and other languages.
Other letters
General information, not tax or legal advice. Always follow the dates and instructions printed on your own notice.