IRS CP504 - Intent to Levy: What To Do Now

A CP504 — Notice of Intent to Levy — means your unpaid tax account has been referred to the IRS Automated Collection System (ACS). It warns that the IRS intends to seize your state tax refund and may levy other assets if the balance isn't resolved. This is several steps into the collection sequence (CP14 → CP501 → CP503 → CP504 → LT11). The CP504 is the last automated notice before the LT11 final notice. At this stage, the IRS can already take your state tax refund. Federal levies (bank accounts, wages) require one more step — the LT11 — but you are close to that line.

The clock: this notice generally carries a 30 days response window. Rights and options expire with it — the date on the letter controls, not the day you found it.

Do this, in order

1. Check the amount on the notice against prior notices (CP14, CP501, CP503) — is this the first time you're seeing it, or has it been escalating?
2. If you can pay in full, do so immediately at IRS.gov/payments — this stops all further collection
3. If you cannot pay in full, request an installment agreement or submit an Offer in Compromise
4. Request a Collection Due Process (CDP) hearing if you want to dispute the debt or propose an alternative
5. Do not ignore a CP504 — the next notice (LT11) is the final stop before enforced bank and wage levies

Straight answers

Why did I get a CP504 before an LT11?

The CP504 is an automated notice that comes before the LT11 final notice. It's the IRS telling you: 'We are ready to levy your state refund, and if you don't respond, we'll do more.' The LT11 is the formal legal notice that precedes federal levies. The sequence is: CP14 (bill) → CP501 (reminder) → CP503 (urgent reminder) → CP504 (intent to levy state refund) → LT11 (final notice, federal levy authorization).

Will the IRS really take my bank account over a CP504?

Not yet — but they will after the LT11, which is next in the sequence. The CP504 allows them to take your state tax refund. Federal levies on bank accounts and wages require the LT11 final notice. If you received a CP504, you have a short window to act before the LT11 arrives. Once the LT11 is issued and 30 days pass, bank levies and wage garnishments can begin.

What if I filed for bankruptcy? Does the CP504 still apply?

If you have an active bankruptcy case, the automatic stay generally prohibits the IRS from levying. However, the IRS can still send notices during bankruptcy. If you received a CP504 during an active bankruptcy, notify your bankruptcy attorney immediately and send a copy of the notice to the IRS with your bankruptcy case number. The IRS must confirm the stay is in effect before proceeding.

Where this sits in the machine

This notice belongs to the collections stage of the IRS process. Understanding the stage matters more than the single letter — read IRS Collections: The Enforcement Arm for the map, and the letter-by-letter anatomy in the firm's notice decoder for CP504.

What representation changes

This is the arena where representation pays for itself most directly: a timely CDP request stops a levy while the case is heard, and the right resolution is chosen from your numbers — reasonable collection potential, statute dates, priorities — not from fear.