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CP504 notice: what it means and what to do
Got an IRS CP504 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP504 notice freeWhat the IRS says this notice is about
You received this notice because we haven't received payment of your unpaid balance. This notice is your Notice of Intent to Levy (Internal Revenue Code section 6331 (d)). If you don't pay the amount due immediately, the IRS can levy your income and bank accounts, as well as seize your property or your right to property including your state income tax refund to pay the amount you owe.
What you need to do
- Read your notice carefully. It explains how much you owe and your payment options.
- Pay the amount you owe immediately.
- Make a payment plan if you can't pay the full amount you owe.
- Contact us if you disagree by calling the toll-free number shown on your notice.
Your deadline
Answer by the date printed on your notice. If there is no date, answer as soon as you can, and call the number on the notice if you need more time.
What to check before you answer
The IRS says it may take money or property
Pay, set up a payment plan, or call before the date on the notice to stop the next step. A final notice with your right to a hearing comes before most levies.
You may be able to remove the penalties
If you had no penalties in the 3 tax years before, filed all required returns, and paid or arranged to pay the tax, the IRS First-Time Abatement policy can remove failure-to-file and failure-to-pay penalties. You can ask in writing or by phone.
Cannot pay it all now? Ask for a payment plan
You can apply for a payment plan on irs.gov. Interest keeps running until the balance is paid, so pay what you can now.
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
- View information pertaining to your tax account.
- Learn more about your payment options and how to make a payment arrangement .
- Request an appeal under the Collection Appeals Program (CAP) before collection action takes place by following the instructions on your notice.
Common questions
What is the notice telling me?
This notice is your Notice of Intent to Levy as required by Internal Revenue Code section 6331 (d). It is your final reminder telling you that we intend to levy your wages, bank accounts, or your state tax refund because you still have an unpaid balance on one of your tax accounts. It is also telling you that we will begin searching for other assets on which to issue a levy. To avoid this, you must pay the amount you owe immediately.
We can also file a Notice of Federal Tax Lien if we haven't already done so. A lien is a public notice to your creditors that the IRS has a right to your interests in your current assets and any assets you acquire after we file the lien; it can affect your ability to get credit.
This notice also explains the denial or revocation of a United States passport. The Fixing America’s Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt. Additional information on passport certification is available at IRS.gov/passports .
What do I have to do?
Pay the amount shown on your notice immediately. You can pay your balance online or mail us your payment in the envelope we sent you. Please include the bottom part of the notice to make sure we correctly credit your account.
If you can't pay the full amount, pay what you can now and contact us immediately at the toll-free number shown on your notice to see if you qualify for a payment plan (including installment agreements) to pay the remaining balance on your account over time. You can also apply for a payment plan online by using the Online payment agreement tool which is the fastest way to get an installment agreement approved.
What happens if I don't pay or contact the IRS?
If you don't pay the amount due immediately or make payment arrangements, we can file a Notice of Federal Tax Lien publicly establishing our priority with your creditors. If the tax lien is in place, you may find it difficult to sell or borrow against your property. The tax lien would affect your ability to get credit ― which may harm your credit rating.
In addition, we can seize ("levy") any state tax refund to which you're entitled. If you still have an outstanding balance after we seize ("levy") your state tax refund, we may send you a notice giving you a right to a hearing before the IRS Independent Office of Appeals, if you haven't already received such a notice. We can then seize ("levy") or take possession of your other property or your rights to property. Property includes:
- Wages, real estate commissions, and other income
- Bank accounts
- Business assets
- Personal assets (including your car and home)
- Social Security benefits
Who should I contact?
If you have any questions about the notice, call us at the toll-free number shown on your notice as soon as possible to speak to a customer service representative.
What if I don't agree or have already taken corrective action?
If you don't agree, contact us immediately to discuss your matter with a customer service representative. We’ll do our best to help you.
If you have already paid this liability or arranged to pay it with an Installment Agreement, you should still call us at the toll-free number shown on your notice to make sure your account reflects this.
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