What Is IRS Notice CP504?

CP504 is one of the most serious notices in the IRS's standard collection sequence. Unlike the earlier reminder notices (CP14, CP501, CP503), the CP504 is a Final Notice Before Levy — meaning the IRS has given you repeated opportunities to pay and is now authorized to seize property. Specifically, the CP504 authorizes the IRS to immediately levy your state tax refunds and notifies you that further levies on wages, bank accounts, and other assets are forthcoming if you don't act.

The CP504 does not give you the right to a Collection Due Process (CDP) hearing — that right is triggered by a different notice, the Letter 1058 or CP90. However, receiving a CP504 means you're very close to that point. If the IRS proceeds to issue a Notice of Federal Tax Lien or a levy on your wages or bank account, those actions carry more formal rights but also more immediate financial consequences.

If you receive a CP504, you need to act immediately — within days, not weeks. Your options are to pay in full, set up an installment agreement to halt collection action while you pay over time, submit an Offer in Compromise if you cannot afford to pay the full balance, or request Currently Not Collectible status if you're in a genuine financial hardship. Any of these arrangements, once approved, stops the IRS from proceeding with levies. If you're disputing the underlying tax liability, you should contact a tax professional immediately — at this stage, the procedural steps and deadlines are critical.

The fact that penalties and interest have been running since the original due date means the balance owed is now significantly larger than your original tax bill. Addressing the CP504 immediately — rather than waiting for further escalation — minimizes the total damage. If you haven't done so already, this is the point at which working with a tax professional, such as an enrolled agent, CPA, or tax attorney, can be well worth the cost.