How much time do I have after receiving a CP504?

The CP504 typically provides about 30 days from the notice date before the IRS can begin levy action. However, the CP504 itself does not provide Collection Due Process (CDP) hearing rights — those come with the LT11 or Letter 1058, which follow the CP504 in the collection notice sequence. Do not wait for the LT11 — the CP504 is your last opportunity to resolve the debt before the enforcement machinery starts moving.

What is the difference between CP504 and LT11?

The CP504 and LT11 are both final notices of intent to levy, but the LT11 (or Letter 1058) carries additional legal weight: it specifically provides your Collection Due Process (CDP) hearing rights under IRC § 6330 and is sent by certified mail. The CP504 is the final notice in the computer-generated collection notice sequence; the LT11/Letter 1058 is the final notice sent by the Collection Field function or ACS unit with the formal CDP hearing notice. You receive the CP504 first; if you do not respond, the LT11 or Letter 1058 follows, at which point you have exactly 30 days to request a CDP hearing and halt levy action.

Can the IRS levy my assets after sending a CP504?

After the CP504 deadline passes, the IRS can issue levies — but they typically wait until after the subsequent LT11 or Letter 1058 is sent, giving you an additional 30-day window for a CDP hearing. However, do not count on this delay. The CP504 is the IRS telling you: this is your last chance to resolve the debt voluntarily before enforced collection begins. Once levies start, they are significantly harder to stop.

What options do I have when I receive a CP504?

When you receive a CP504, you have several options: (1) Pay the balance in full to stop enforcement immediately. (2) Set up an IRS installment agreement — if you can pay within 72 months, you may qualify for a streamlined installment agreement without financial disclosure. (3) Submit an Offer in Compromise (OIC) if you cannot pay the full amount — the OIC process suspends levy action while the offer is pending. (4) Request Currently Not Collectible (CNC) status if paying anything would cause economic hardship. (5) Request penalty abatement to reduce the balance. A tax professional can help determine which option best fits your situation.

What happens if I ignore CP504?

If you ignore CP504, the IRS will escalate. The next step is typically an LT11 or Letter 1058 — the formal final notice with CDP hearing rights, sent by certified mail. If you ignore that as well, the IRS can (and will) issue levies against your bank accounts, garnish your wages, seize your vehicles and real property, and intercept your tax refunds. Levies happen without further notice once the CDP deadline passes. A bank levy freezes your account immediately. A wage garnishment takes a portion of every paycheck. Both continue until the debt is satisfied or released.

Government tax document with IRS warning stamp

Urgent — Final Notice Before Levy

IRS CP504: Final Notice of Intent to Levy

Q: What is IRS Notice CP504?

IRS Notice CP504 is the final balance-due notice before the IRS initiates enforced collection action. It is the fourth in the standard IRS collection notice sequence: CP14 → CP501 → CP503 → CP504. The CP504 gives you approximately 30 days to pay or make alternative arrangements before the IRS can begin levying your bank accounts, garnishing your wages, and seizing your assets. It is also known as the 'Urgent Notice — Intent to Levy' or 'Final Notice of Intent to Levy.'

The CP504 is the last balance-due notice before IRS enforcement. You have roughly 30 days to act before the IRS can levy your bank accounts, garnish your wages, and seize your assets. Here is exactly what to do — and why acting now matters.

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Understanding Your Notice

What Is IRS Notice CP504?

The CP504 is the final balance-due notice in the standard IRS collection sequence.

IRS Notice CP504 is the fourth and final notice in the standard IRS collection letter sequence. The sequence begins with a CP14 (first balance-due notice) and escalates through CP501 (reminder), CP503 (second reminder — urgent), and culminates in CP504 (final notice — intent to levy). The CP504 means the IRS has sent three previous notices and received no satisfactory response. It is the last step before the IRS Collection function or Automated Collection System issues the formal LT11 or Letter 1058 with Collection Due Process hearing rights.

The CP504 states the total amount due (including accrued penalties and interest), the tax periods involved, and the deadline for response. It warns that the IRS may file a Notice of Federal Tax Lien and levy state tax refunds through the Treasury Offset Program. While the CP504 itself does not trigger CDP hearing rights, it is the warning shot — the next notice (LT11 or Letter 1058) will provide those rights with a strict 30-day deadline.

The IRS Collection Notice Sequence

Where the CP504 fits in the escalation sequence.

CP14

Balance Due — First Notice

Sent after return processing shows unpaid balance

CP501

Reminder — Balance Due

~4-5 weeks after CP14

CP503

Second Reminder — Balance Due (Urgent)

~4-5 weeks after CP501

CP504

Final Notice — Intent to Levy

~4-5 weeks after CP503 — YOU ARE HERE

← YOU ARE HERE

LT11 / Letter 1058

Final Notice — CDP Hearing Rights

~30-60 days after CP504

Enforcement

Bank Levy, Wage Garnishment, Asset Seizure

30+ days after LT11/Letter 1058 deadline

Your Options

Your Options After Receiving a CP504

Pay in Full

Pay the full balance to stop all enforcement activity immediately. If you have access to funds, this is the fastest resolution — no further notices, no levy, no lien (if one hasn't been filed yet). Payment can be made online at IRS.gov/payments, by phone, or by mail.

Set Up an Installment Agreement

If you can pay within 72 months and owe less than $50,000, you may qualify for a streamlined installment agreement without detailed financial disclosure. You can apply online, by phone, or by submitting Form 9465. Once the IA is in place, the IRS will not levy while you remain current on payments.

Submit an Offer in Compromise (OIC)

If you cannot pay the full amount and an installment agreement is not feasible, an OIC allows you to settle for less than the full amount owed. Be aware: the OIC process requires full financial disclosure (Form 433-A) and the IRS evaluates your reasonable collection potential. OIC submission generally suspends levy action while the offer is pending.

Request Currently Not Collectible (CNC) Status

If you cannot afford to pay anything — and you can demonstrate that paying would prevent you from meeting basic living expenses — you may qualify for CNC (hardship) status. The IRS temporarily suspends collection while your financial situation is reviewed. Interest and penalties continue to accrue, but enforced collection stops. CNC status requires submitting Form 433-A documenting all income, expenses, and assets.

Request Penalty Abatement

A significant portion of your balance may be penalties — failure-to-file penalties (5% per month, up to 25%), failure-to-pay penalties (0.5% per month, up to 25%), and accuracy-related penalties (20%). If you qualify for First Time Abatement (FTA) or reasonable cause, abating these penalties reduces your total balance and associated interest.

Contact a Tax Professional Immediately

CP504 is urgent. A tax professional can quickly assess your situation, determine which resolution program you qualify for, and begin the process of stopping enforcement. The consultation is typically free, and professional representation ensures you do not accidentally agree to terms that worsen your financial situation.

Related Resources

Levy Release

If the IRS has already levied your bank account or garnished your wages.

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Complete IRS Notice Guide

Full reference of every major IRS notice with response guides.

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IRS Collections Defense

Professional representation to stop all IRS collection actions.

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Payment Plans

Set up an IRS installment agreement before enforcement begins.

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Offer in Compromise

Settle your tax debt for less than the full amount owed.

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Currently Not Collectible

Hardship relief when you genuinely cannot afford to pay.

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The Window Is Closing — Act Before the LT11 Arrives

Resolve Your CP504 Before It Becomes a Bank Levy

The CP504 is your last chance to resolve the debt voluntarily before IRS enforcement kicks in. Our team reviews CP504 cases immediately — we identify your best resolution option and begin work the same day.

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