What Is an IRS CP504 Notice? — Booknex Inc.

Urgent — notice of intent to levy your state tax refund. A CP504 is an urgent IRS notice of intent to levy your state tax refund and pursue other assets for an unpaid balance. Learn what to do now. Call Booknex at (727) 717-1246.

What the CP504 Notice Means

A CP504 is an urgent notice. It tells you that you have an unpaid balance and that, if you do not pay, the IRS intends to levy (seize) your state income tax refund and begin searching for other assets to collect from. This notice means earlier letters were not answered. While the CP504 itself allows the IRS to take your state refund, it is also the step right before a final notice that allows levies on wages, bank accounts, and other property.

Deadline

The CP504 gives you a deadline (generally about 30 days from the notice date) to pay or respond before the IRS levies your state refund and escalates collection.

Why You Received This Notice

Previous notices (CP14, CP501, CP503) about the balance went unanswered. The tax debt is still unpaid and no agreement is in place.

What to Do Next

Treat this as time-sensitive — read the amount and deadline carefully. Pay the balance in full at IRS.gov/payments if you can. If you cannot pay in full, set up a payment plan or ask about hardship options before the deadline. If you disagree, respond immediately with documentation, or have a tax professional contact the IRS on your behalf.

What Happens If You Ignore It

If you do not respond, the IRS can seize your state tax refund and then issue a final notice of intent to levy. After that final notice and a 30-day hearing window, the IRS can levy your wages and bank accounts and file a federal tax lien against your property.

Frequently Asked Questions

Can the IRS take my paycheck after a CP504?

Not directly from the CP504 alone — it allows the IRS to take your state tax refund. Wage and bank levies require a later final notice (LT11 or CP90) and a 30-day window. But you should resolve it now.

What is the difference between a CP504 and a final notice of intent to levy?

The CP504 allows the IRS to levy your state refund and is a warning. The final notice (LT11/CP90) gives you the right to a Collection Due Process hearing and allows broader levies on wages and bank accounts.

What should I do if I can't pay the CP504 amount?

Contact the IRS or a tax professional before the deadline to set up an installment agreement, request currently-not-collectible status, or explore an offer in compromise.