CP504 Notice – What It Means and What to Do

CP504 Notice – What It Means and What to Do

If you’ve received a letter from the IRS labeled CP504, your tax problem just became more serious.

While it’s not the final levy notice (that’s usually LT11 or Letter 1058), the CP504 is the IRS’s formal warning that it intends to levy your state tax refund — and it may escalate from there.

At Summit Tax Relief, we help taxpayers nationwide respond to CP504 notices, stop collections, and resolve IRS debt before things spiral out of control.

This guide explains what the CP504 really means, what you should (and shouldn’t) do next, and how to protect yourself from the next phase of IRS enforcement.

What Is a CP504 Notice?

IRS CP504 is a Notice of Intent to Levy your state tax refund. It is usually the third or fourth notice the IRS sends when you have an unpaid balance.

Key facts:

It does not yet allow the IRS to levy your wages or bank accounts
It does authorize seizure of your state tax refund
It serves as your last clear warning before the Final Notice of Intent to Levy
It may indicate the IRS is preparing to file a federal tax lien

If you do nothing after CP504, the next letter could authorize full IRS levy action.

What Happens After CP504?

If the CP504 is ignored:

The IRS will likely issue LT11 or Letter 1058 next
Those final notices authorize the IRS to levy your:
Paycheck
Bank account
Vendor payments (if self-employed)
Social Security benefits

CP504 is a clear message from the IRS:

“You didn’t respond to previous notices. We’re preparing to act.”

What Does CP504 Include?

A standard CP504 Notice will state:

Your tax balance, including penalties and interest
A statement of intent to levy your state tax refund
A deadline to respond (usually 30 days from the date on the notice)
Contact info and instructions to request a resolution

It will not include the right to a Collection Due Process (CDP) hearing — that right comes with LT11 or 1058.

Real Client Example

Client: HVAC technician in Colorado

Owed $19,400 from 2018–2020
Ignored CP14 and CP503
Received CP504 — still didn’t respond
IRS issued LT11 45 days later
Summit filed POA same-day, submitted Form 433-A
IRS paused collections, client approved for $120/month plan

Why CP504 Is So Serious

It means:

Your case has escalated
You’re now being considered for enforced collection
You may soon lose your CDP hearing rights
A tax lien may be filed at any moment

Many taxpayers assume the IRS won’t act — until their paycheck or account is levied.

Don’t wait for that to happen.

How to Respond to CP504

1. Don’t Ignore It

Time is running out. CP504 is the final notice before the “final notice.”

2. File Any Missing Returns

You must be in compliance before the IRS will work with you.

3. Request a Hold via Power of Attorney

Summit files POA immediately to contact the IRS on your behalf.

4. Submit Financial Documentation (Form 433-A or 433-F)

This shows what you can afford — and proves eligibility for:

Installment Agreement
Offer in Compromise
Currently Not Collectible status

5. Negotiate a Resolution

Once financials are submitted, we can stop enforcement and secure a formal agreement.

Example: Offer vs. Installment vs. CNC

Option	Best For	Outcome
Offer in Compromise	Limited income + assets	Settle for less
Installment Agreement	Can afford monthly payments	Avoid levies
Currently Not Collectible	Can’t afford anything now	Collection paused

Why Work With Summit Tax Relief?

Nationwide IRS representation
Led by Marc Boulanger, CPA (Summit is not a CPA firm but is owned by one)
We file POA same-day and stop collections fast
Flat fees — no surprises
Full case-building: financials, transcripts, resolution negotiation

CP504 is not the end — but it’s the last safe window. Let’s fix it before the IRS goes further.

Internal Links

Call to Action

Received a CP504 Notice? This is your final chance before full IRS enforcement.

📞 Call Summit Tax Relief at (833) 477-4911
📅 Schedule Your Free Strategy Call

FAQ

Can the IRS garnish me after CP504?
Not yet — but they’re preparing to. The next notice (LT11 or 1058) is the final warning before wage or bank levy.
Can I stop collections now?
Yes — but only if you act quickly. Once the IRS sends the next notice, your rights are reduced.
Is this the same as a lien notice?
No — but a CP504 often comes just before or with a Notice of Federal Tax Lien.
What if I’ve already gotten LT11 too?
Then you must act within 30 days to request a CDP hearing and pause collections. We’ll handle this for you.

📣 About the Author

Marc Boulanger, CPA is the founder of Summit Tax Relief LLC, a boutique tax resolution firm based in Oklahoma City, OK and trusted by high-income individuals and business owners across Oklahoma.

He is the author of Oklahoma Taxpayers' Guide: Taking A Stand Against the IRS: A Step-by-Step Plan for Dealing With Tax Collectors and Unfiled Returns Without Going Broke, available now on Amazon. The book offers a step-by-step plan for resolving IRS tax debt without losing your business, your home, or your peace of mind.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.summittaxrelief.com or call (833) 477-4911.

< Older Post

Newer Post >

CP504 Notice – What It Means and What to Do