- CP504 serves as the required Notice of Intent to Levy under Internal Revenue Code section 6331(d) and is the final reminder before levies begin.
- The notice also warns that the IRS will search for other assets to levy and may file a federal tax lien if not already done.
- Immediate payment, a payment plan, or contact with the IRS can stop collection actions including potential passport denial under the FAST Act.
- Calling the toll-free number on the notice allows discussion of disputes or arrangements before levies or liens proceed.
What the CP504 Notice Means
A CP504 notice is sent when the IRS has not received payment of an unpaid tax balance. It functions as the official Notice of Intent to Levy required by Internal Revenue Code section 6331(d).
The notice states that if the amount due is not paid immediately, the IRS can levy income, bank accounts, state income tax refunds, and seize property or rights to property. It also informs the recipient that the IRS will begin searching for other assets on which to issue a levy.
Republic Tax Relief provides private tax-resolution services for individuals and businesses with IRS tax issues and advertises a free, no-obligation initial consultation. Taxpayers who receive a CP504 notice and have questions about their specific unpaid balance or options for communicating with the IRS may contact the firm to evaluate suitability of its services.
Consequences of Not Responding
Without payment or a payment arrangement, the IRS can file a Notice of Federal Tax Lien. This public notice informs creditors of the IRS claim on current and future assets and can affect the ability to obtain credit.
The notice also explains possible denial or revocation of a United States passport for seriously delinquent tax debt under the Fixing America’s Surface Transportation (FAST) Act.
Levies can reach wages, bank accounts, business assets, personal assets including vehicles and homes, commissions, and certain benefits such as Social Security.
Required Actions
The IRS instructs recipients to read the notice carefully because it shows the amount owed and available payment options. The full amount should be paid immediately, either online or by mailing the payment with the bottom portion of the notice.
If unable to pay in full, the taxpayer should pay what they can and contact the IRS at the toll-free number on the notice to discuss a payment plan or installment agreement. The Online Payment Agreement tool can also be used to request an installment agreement.
Contact should occur as soon as possible to speak with a customer service representative about questions, disagreements with the balance, or if corrective action such as prior payment or an existing installment agreement has already been taken.
Options Before Collection Proceeds
The notice provides instructions to request an appeal under the Collection Appeals Program before collection action takes place. It also covers the possibility of a later notice that would provide a right to a hearing before the IRS Independent Office of Appeals if a state tax refund is seized and a balance remains.
IRS guidance checked .
General information only, not individual tax, legal, or financial advice. Rules, deadlines, and eligibility depend on your circumstances. Check current official guidance or consult a qualified professional.
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