CP504 Notice
An IRS notice warning that the agency intends to levy state tax refunds (and may levy other property) if a tax balance isn't paid.
If you’re holding a CP504 in your hands, it means the earlier notices — a CP14 and probably a reminder or two — went unanswered, and the IRS is turning up the pressure. This one’s a formal warning that they intend to seize your state tax refund, and possibly other property, if the balance isn’t paid by the date printed on it.
Here’s what it isn’t: it’s not yet the final notice that lets the IRS actually levy your wages or bank account. That authority comes from a separate document — a “Notice of Intent to Levy,” usually shown up as an LT11 or Letter 1058. But don’t read that as “nothing to worry about yet.” A CP504 means your account is far enough along that a real levy notice is genuinely the next likely step if you don’t do something. See IRS Notice Escalation for the full notice ladder side by side.
You’ve got real options at this stage: pay it off, set up an installment agreement, request Currently Not Collectible status if you can show real financial hardship, or dispute the balance if you think it’s wrong. What doesn’t work is ignoring it — that just keeps things moving toward the notice that actually authorizes taking money directly.
Frequently asked
Does a CP504 notice mean the IRS can levy my wages right away?
No — a CP504 only warns of a state tax refund levy and possibly other property. Wage or bank levies require a separate "Notice of Intent to Levy," usually an LT11 or Letter 1058, sent later.
— US Debt Compass Editorial Team
What should I do after getting a CP504?
You still have real options — pay the balance, set up an installment agreement, request Currently Not Collectible status if you're facing real hardship, or dispute it if you think it's wrong. Ignoring it just moves you closer to the notice that authorizes an actual levy.
— US Debt Compass Editorial Team