CP504 notice: respond to the levy warning
CP504 warns that the IRS intends to levy because an account balance remains unpaid. Read it promptly, identify the tax and period, and check what collection or hearing notices you have already received for that liability.
The IRS describes CP504 as a notice of intent to levy under Internal Revenue Code section 6331(d). It should not be treated as a new, universal 30-day Collection Due Process hearing opportunity. Prior notices and the type of levy matter.
Read the warning alongside earlier correspondence
The official CP504 page directs you to pay immediately, make arrangements if you cannot pay in full, or contact the IRS if you disagree. It discusses a levy on a state income-tax refund and potential action against other property.
That same page says the IRS may send a hearing-rights notice if one has not already been received. Do not assume that another particular letter must arrive before you need to act. Retrieve earlier correspondence for the same tax and periods and check whether a hearing opportunity was already provided.
If the table is clipped, scroll sideways. Use arrow keys when focused.
| Evidence to locate | What it helps establish |
|---|---|
| CP504 and all its pages | Tax, period, balance and current instructions |
| Earlier levy or hearing notices | Whether rights were already offered for this liability |
| Any hearing request and sending proof | What was requested, when and for which periods |
| Payment or agreement records | What corrective action occurred and whether the account reflects it |
| Bank or employer levy communication | Whether collection has already moved beyond a warning |
Do not combine an unrelated year’s notice with the year on CP504. An agreement, appeal or payment may cover some periods without resolving every account.
Intent to levy and hearing rights are different questions
The intent notice under section 6331(d) and hearing rights under section 6330 are distinct requirements. A state-refund levy is one statutory situation in which the hearing opportunity can come after the levy. Other statutory exceptions also exist.
For the usual levy-hearing process, Publication 1660 explains the notice and written-request requirements. Section 6330 provides the governing hearing rules and exceptions. Whether a prior opportunity has already occurred is a fact to establish, not something the CP504 code alone answers.
If the document you need to address is an actual LT11 or Letter 1058, use the hearing-request guide. Do not restart its deadline from the date a later reminder arrived.
This distinction matters because saying either that CP504 immediately permits unrestricted seizure or that only a state refund can ever be at risk gives an incomplete picture. Investigate the actual notice history and any current collection action without waiting through a guessed safe period.
Raise a disagreement or missing corrective action promptly
For a disputed balance, identify the specific payment, return adjustment, period or charge that you believe is wrong. Have the supporting records ready when you contact the IRS at the number shown on the notice.
The CP504 instructions say to contact the IRS even if the liability has already been paid or an installment agreement arranged, so that the account reflects it. Retain the payment proof or actual agreement decision and ask about the account status for the periods in question.
A submitted application is different from an approved agreement. Neither a phone conversation nor a partial payment proves that every collection issue has stopped. Keep a written record of the explanation, documents requested and result to verify.
Collection Appeals Program is separate from CDP
The CP504 page points to the Collection Appeals Program, or CAP, before collection action. CAP procedures differ depending on whether your contact has been a notice or telephone call, or a Revenue Officer. Publication 1660 describes those routes and their short procedural time limits.
Use the instructions that match the actual contact. Do not send everyone Form 12153 simply because they have CP504. That form concerns a Collection Due Process or equivalent hearing following the applicable hearing-rights notice.
CAP does not provide the same court-review route as a CDP determination, and it is not the procedure for challenging the existence or amount of the underlying tax liability. Identify the issue and appeal route before choosing a form.
If a levy is already affecting money or wages
A bank freeze or employer withholding requires separate, immediate attention. Review the IRS levy-release instructions and contact the IRS about the existing action. Release of a levy does not itself cancel the unpaid tax.
If the amount is valid and unaffordable, the payment-plan and hardship-status guides explain distinct federal resolution tasks. An application or claimed hardship is not confirmation that an issued levy has been released. Preserve the actual release decision and communication to the party holding the funds or wages.
Sources
- IRS CP504 explanation: intent warning, prior hearing notice and corrective-action checks.
- Publication 1660 and 26 USC 6330: appeal procedures, hearing scope and exceptions.
- IRS levy release: a levy already issued is a separate matter.
Checked against official sources on November 13, 2026. Business CP504B and account-specific notice histories require their own review.