Ask Maxi · IRS letters
I got a CP504 from the IRS. What does it mean?
A CP504 is a notice of intent to levy, which means the IRS is warning that it can start taking money or property to pay a balance you still owe.
The first thing the IRS can take after a CP504 is your state tax refund. It is also the step before the IRS moves on to wages, bank accounts and other property, and the IRS may file a federal tax lien at this stage.
What to do, today:
- Read the balance and tax year carefully, and check whether you have already paid or set up a plan.
- Pay in full if you can.
- If you cannot, contact the IRS right away about a payment plan. Getting an agreement in place generally stops levy action while it is in effect.
- If you disagree, contact the IRS promptly. You can request a Collection Appeals Program review before collection action starts.
Two things people do not expect. A large enough unpaid balance can be certified to the State Department, which can block a passport from being issued or renewed. And a filed lien is public, which can affect credit and make selling or refinancing property harder.
A CP504 is serious, but it is not the final notice. That is the LT11 or Letter 1058, and it comes with a 30-day window to request a hearing. You still have time to fix this on your terms.
Send us a photo of the first page of the notice. We will tell you what it means for you and what to do next.
Want us to handle this for you? IRS letter help →