IRS CP504 Notice: Intent to Levy — How to Stop It
The CP504 is a serious escalation in IRS collection. It means the IRS is about to seize your state tax refund and can soon levy your wages and bank accounts. At this stage, immediate action is required.
What Is the CP504 Notice?
The CP504 is the IRS's statutory notice of intent to levy. It is sent when previous balance due notices have been ignored. Unlike the CP14, the CP504 is a legal precursor to enforcement — the IRS is notifying you that it intends to seize property, starting with your state tax refund.
What the IRS Can Seize After a CP504
After issuing a CP504, the IRS can levy your state income tax refund immediately. Further enforcement can include wage garnishments, bank account levies, seizure of business assets, and filing of federal tax liens. The CP504 is often followed by the LT11 or Letter 1058, which is the final notice before full enforcement begins.
Your Rights at the CP504 Stage
Even at the CP504 stage, you retain important rights. You can request a Collection Due Process (CDP) hearing within 30 days of the LT11 final notice. You can propose an installment agreement, submit an Offer in Compromise, or request Currently Not Collectible status. A CDP hearing formally halts enforcement while your case is reviewed by the IRS Office of Appeals.
How to Respond to a CP504
Do not wait. Call the IRS or contact a tax professional immediately. Options include: paying in full, establishing an installment agreement, submitting an OIC, or requesting a CDP hearing. If you believe the balance is wrong, you have the right to dispute it. The most important thing is to take action — every day without a response increases the likelihood of aggressive enforcement.
Filing a Federal Tax Lien After CP504
The IRS can file a Notice of Federal Tax Lien (NFTL) once a balance is formally established and you have been given notice and opportunity to pay. The lien attaches to all your current and future property. It is publicly recorded and will appear on credit reports, making it difficult to sell or refinance real estate, secure business credit, or obtain financing.
Real-World Example
A restaurant owner in Glendale received a CP14 in January and two CP501 reminders before the CP504 arrived in July. She had ignored all of them due to cash flow problems. By the time she contacted us, her state refund had already been seized ($2,100). We filed a request for a 120-day extension to pay, established a partial payment installment agreement, and submitted a penalty abatement request — ultimately reducing her total liability by over $2,400.
IRS Help for CP504 Notices in Los Angeles and Glendale
If you received a CP504, time is critical. Calculus Tax, Inc. provides immediate IRS notice response services for taxpayers in Burbank, Los Angeles, Glendale, and throughout LA County. Call (310) 598-3759 or visit 1050 W. Alameda Ave., Burbank, CA 91506.
Frequently Asked Questions
Is a CP504 the same as a final notice?
No. The CP504 is a notice of intent to levy, but it is not the final notice. The LT11 or Letter 1058 is the final notice before levy and is the trigger for your CDP hearing rights.
Can I still set up a payment plan after a CP504?
Yes. You can still request an installment agreement after receiving a CP504. Acting quickly can prevent further enforcement and may stop any pending state refund levy.
How long after a CP504 will the IRS levy my wages?
The IRS typically sends the LT11 final notice 30–60 days after the CP504. Once the LT11 is issued, you have 30 days to request a CDP hearing before full enforcement can begin.
Will a CDP hearing stop a levy?
Yes. Timely filing of a CDP hearing request stops all IRS enforcement action during the hearing period. This gives you time to work with a tax professional to propose a resolution.
What is the difference between a levy and a lien?
A lien is a legal claim against your property that secures the government's interest. A levy is the actual seizure of property. A lien can exist without a levy, but a levy is a more immediate enforcement action.
Can the CP504 be removed from my record?
The CP504 is a collection notice and does not appear on credit reports independently. However, the federal tax lien that may follow can. Lien withdrawal is possible after full payment or through specific IRS programs.
IRS CP504 Notice: Intent to Levy — How to Stop It Services in Los Angeles
Calculus Tax, Inc. provides irs cp504 notice: intent to levy — how to stop it services to individuals and businesses throughout Los Angeles County. Our licensed CPAs are based in Burbank and serve clients in Glendale and surrounding communities.
Our Burbank office serves clients throughout Los Angeles County including Los Angeles, Long Beach, Santa Monica, Glendale, Burbank, and more.
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