IRS Notice CP 504 - What This Letter Means & What to Do

IRS CP 22a

The CP 504 is a final notice of a balance that is due on your account. This is usually the fourth notice that is sent, and will tell you that a levy will be issued against your state tax refund. It may also include details stating that the IRS plans to search for other assets on which a levy can be placed. Additionally, a Federal Tax Lien may also be filed if you do not pay at once.

Next Step With CP 504 IRS Letter?

Since you have already ignored several notices you need to pay the balance due as soon as possible. This can help you avoid a levy or lien, or have it removed if the IRS has already moved forward.

When Should I Get Back To The IRS Regarding this CP 504 Notice?

If you receive a CP 504 notice you do not have any time to waste. This notice means that the IRS is serious about collecting the money that you owe. It would be in your best interest to pay or setup an installment agreement as soon as possible.

What If I Don't Pay or Respond to the CP 504 Notice?

If you ignore a CP 504 notice the IRS will continue to move forward with the levy and/or lien process. They cannot levy you at this point because they will first send a formal letter (L1058 or LT11) stating their Intent to Levy your wages, bank accounts, or other personal property. This will make your situation worse as you not only owe money, but the IRS has decided to take it however possible.

Who Should I Discuss CP 504 Letter With?

Any questions about a CP 504 can be directed to the IRS at the number listed on the notice. If you need help resolving your problem because you cannot pay and either need to setup a payment plan or use some other form of tax settlement, call the number at the top of the page or fill out the form on your right.

What If I Feel the IRS is Wrong By Sending The the 504 Notice?

You may not agree with receiving a CP 504 notice. In this case, you should call the IRS immediately to let them know your stance and why you feel there is an error. You would be better off discussing your situation with the IRS before you receive a CP 504 notice, though.

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