IRS Notice Guide

CP504 Notice: What the IRS Notice of Intent to Levy Means

By Ray Neu, Publisher | Last reviewed: October 25, 2026 | Reading time: 7 min

Short answer

A CP504 is the Notice of Intent to Levy the IRS sends under 26 U.S.C. § 6331(d). It lets the IRS levy a state tax refund, warns of a federal tax lien, and starts a 10-day clock for a higher late payment penalty. Wages, bank accounts and other property generally wait for the LT11 or Letter 1058 hearing notice.

This guide sets out, from IRS pages, the Internal Revenue Manual and the statute, what a CP504 permits now, what it only warns about, and the options available before any levy on wages or accounts.

Deadline to know: The IRS CP504 page says to pay the amount shown on the notice “immediately.” Under § 6651(d) and IRM 20.1.2.3.8.1.1, the late payment penalty rate rises to 1% a month for penalty months that begin more than 10 days after the CP504.

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What a CP504 notice is

The IRS page for this notice calls it “your Notice of Intent to Levy (Internal Revenue Code section 6331 (d)).” Section 6331(d)(1) allows a levy only after written notice of the intent to levy, and § 6331(d)(2) requires that notice at least 30 days before the levy.

IRM 5.11.1.5.4 confirms that the § 6331(d) notice “is the CP 504 notice or the “Status 58″ notice.” The IRS page also calls it “your final reminder,” which can mislead: a separate hearing notice still follows before most levies.

What the IRS can do now, and what waits

Two IRS pages read differently here. The CP504 page opens by saying that without immediate payment “the IRS can levy your income and bank accounts,” including a state income tax refund. The IRS Appeals FAQ answers a CP504 question this way: “The IRS cannot levy with just this notice.”

The CP504 page’s own FAQ gives the order: a state tax refund levy first, then, if a balance remains, “a notice giving you a right to a hearing,” and only then wages, bank accounts, business and personal assets, and Social Security benefits. IRM 5.11.1.3.2 explains why the refund differs: a state refund levy is an exception to the pre-levy hearing notice, with a hearing offered afterward.

Action	After CP504?
Levy on a state tax refund	Yes, per the CP504 page and IRM 5.11.1.3.2
Filing a Notice of Federal Tax Lien	Possible, “if we haven’t already done so”
Searching for other assets	Yes, the notice says the search begins
Levy on wages, bank accounts, other property	Generally after the LT11 or Letter 1058 hearing notice

The lien warning and the passport paragraph

Federal tax lien

The CP504 page says the IRS may file a Notice of Federal Tax Lien, a public notice to creditors covering current assets and “any assets you acquire after we file the lien,” which can make it hard to sell or borrow against property. See the federal tax lien guide.

Passport certification

The notice “also explains the denial or revocation of a United States passport” under the FAST Act. For 2026, the IRS passport page sets the seriously delinquent threshold at more than $66,000, and the IRS must also have filed a lien with remedies lapsed or exhausted, or issued a levy. Debts in a timely paid installment agreement, currently not collectible status, or a pending plan or offer request are not certified. Certification comes with Notice CP508C.

What the notice asks for, and by when

The IRS page gives no number of days. Its instructions are:

Pay “immediately,” online or by mail with the bottom part of the notice.
If full payment is not possible, pay what can be paid and call about a payment plan, or apply with the Online Payment Agreement tool.
If you disagree, call the number on the notice. Those who already paid or have an installment agreement are told to call too.

To dispute the amount itself, the Appeals FAQ lists three routes: pay and file a refund claim, request audit reconsideration under Publication 3598 with new information, or file a doubt as to liability offer using Form 656-B.

Questions about a CP504 balance?

An attorney can review the notice and the payment or appeal routes that fit the facts.

Start Your Free Evaluation Call (202) 968-1121

How the penalty changes after a CP504

The ordinary failure-to-pay penalty is 0.5% of unpaid tax per month or part of a month, capped at 25%. Section 6651(d) substitutes 1 percent for 0.5 percent for months beginning after “the day 10 days after the date on which notice is given under section 6331(d).”

The statute names no specific notice. IRM 20.1.2.3.8.1.1 lists CP 504 as a notice of intent to levy for this rule, along with the LT11 and Letter 1058, and applies the 1% rate to “any penalty month beginning after the 10th day following the status 58 date.” For a timely filed individual return under an approved payment plan, the IRS penalty page gives 0.25% instead.

Payment options and levy protection

Installment agreement. Available online for $50,000 or less in combined tax, penalties and interest, with all returns filed. See the installment agreement guide.
Currently not collectible. A hardship status the passport rules also exclude. See CNC status guide.
Offer in compromise. One form, doubt as to liability, disputes the amount owed. See the offer in compromise guide.

Section 6331(k)(2) bars a levy while a proposed installment agreement is pending or in effect, and for the 30 days following a rejection or termination. Section 6331(k)(1) does the same for an offer in compromise once accepted for processing.

Collection Appeals Program

The CP504 page lists a CAP appeal “before collection action takes place by following the instructions on your notice.” Publication 1660 says CAP covers a levy before or after it is placed and uses Form 9423 for a written request, but cannot be used to challenge the amount of tax, and its decision cannot be taken to court.

What comes next: LT11 or Letter 1058

If the balance stays open, the next notice is the LT11 or Letter 1058, which the IRS page summarizes as “We intend to seize your property or rights to property.” It carries the right to a Collection Due Process hearing, and the Appeals FAQ allows 30 days from receipt to ask for one. Details are in the LT11 and Letter 1058 guide.

Where this notice sits in the sequence

CP14: the IRS bill for unpaid taxes.
CP501: a reminder of the balance.
CP503: the second reminder.
CP504: Notice of Intent to Levy under § 6331(d) (this page).
LT11 or Letter 1058: the hearing notice before most levies.

All five are explained side by side on the IRS notices hub.

When an attorney matters

The CP504 page itself describes a phone call or an online payment plan, and links to Low Income Taxpayer Clinics. Publication 1660 says a taxpayer may appear alone at CAP and CDP proceedings or be represented by an attorney, a CPA, or a person enrolled to practice before the IRS. Differences show up in a few places:

Court review. A CDP determination can be contested in the U.S. Tax Court; a CAP decision cannot.
Privilege. Section 7525 extends attorney-style confidentiality to CPAs and enrolled agents only in noncriminal tax matters.
Disputed amounts. Refund claims, audit reconsideration and liability offers each have their own rules.

The attorney vs CPA vs enrolled agent comparison covers the roles in more depth.

Related guides

Frequently Asked Questions

Can the IRS take wages or a bank account on a CP504 alone?

Not according to the IRS Appeals FAQ, which says “The IRS cannot levy with just this notice.” For wages, bank accounts and most other property, the LT11 or Letter 1058 hearing notice comes first. A state tax refund is the exception the CP504 page names.

Is CP504 the last notice before a levy?

The CP504 page calls it a final reminder, but the IRS Appeals FAQ says a formal Notice of Intent to Levy and Your Right to a Hearing is the next step. That notice is the LT11 or Letter 1058.

Does a CP504 make the late payment penalty go up?

It can. IRM 20.1.2.3.8.1.1 lists CP 504 as a notice of intent to levy for § 6651(d). The failure-to-pay rate then rises from 0.5% to 1% a month for penalty months beginning more than 10 days after the notice, still within the 25% cap.

Will a CP504 cause a passport to be denied?

Not by itself. The notice explains the passport rules, but certification requires a seriously delinquent debt (more than $66,000 for 2026) plus a filed lien with rights lapsed or exhausted, or a levy. The IRS sends Notice CP508C when it certifies.

Can a CP504 be appealed?

The CP504 page points to the Collection Appeals Program, using the instructions on the notice. Publication 1660 says CAP cannot be used to dispute the amount owed, and its decision cannot be taken to court.

Talk through a CP504 before the next notice

A free, confidential evaluation can help sort out which payment or appeal option the law makes available.

Start Your Free Evaluation Call (202) 968-1121

About the Author

Ray Neu

Ray Neu is the publisher of IRSAttorneys.net. A former law enforcement officer with a background in criminal justice and digital publishing, he oversees editorial direction, partnership standards, and compliance review for the site. He is not an attorney and does not provide legal advice; all tax law content is sourced and reviewed against the standards documented on the Editorial Team & Standards page.

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IRS Circular 230 Disclosure: To ensure compliance with Treasury Department rules governing tax practice, any tax information contained on this website was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty. You should consult a licensed tax professional regarding your individual situation.

Results described on this website are not a guarantee, warranty, or prediction of the outcome of any tax matter. Every situation is different. Prior results do not guarantee a similar outcome. Article content reflects general information about federal tax procedure as of the last reviewed date and may not reflect subsequent changes in IRS policy, regulations, or case law.