IRS CP504 Notice What It Means and How to Respond

Introduction: Don’t Ignore the CP504 Notice — It’s Not Just a Warning

If you’ve received an IRS CP504 Notice, you’re likely already stressed — and with good reason.

CP504 means the IRS is preparing to levy your assets — including your state tax refund, bank account, or wages.

But you still have time to act — if you know what to do next.

In this guide, we’ll explain what the CP504 notice really means (and some of the other "Love Letters" you may receive), how it fits into the IRS collection process, and how Orange County taxpayers can respond before enforcement begins.

🔍 What Is an IRS CP504 Notice?

A CP504 notice is formally called:

Notice of Intent to Levy – Intent to Seize Your State Tax Refund or Other Property

It means the IRS:

• Has assessed a balance you owe
• Sent you earlier notices (CP14, CP501, CP503)
• Hasn’t received payment or a response
• Is preparing to seize assets to satisfy the debt

🧾 What Does the CP504 Notice Include?

The notice outlines:

• The tax year and type of tax owed
• The balance due (including penalties & interest)
• A warning that the IRS may seize your state tax refund, and possibly other assets
• A final payment deadline (usually within 30 days)

🕒 What Happens If You Don’t Respond?

• The IRS may seize your California state refund
• You may receive a Final Notice of Intent to Levy (LT11 or Letter 1058)
• The IRS may proceed to levy:
• Bank accounts
• Wages
• Business receivables
• Social Security payments

👉 What Happens If You Ignore IRS Notices

⚖️ How the CP504 Notice Fits in the IRS Collection Process

✅ What You Should Do After Receiving CP504

✅ 1. Confirm the Balance Is Correct

Request or review your IRS transcript. Sometimes CP504 notices are based on:

• Substitute returns
• Unfiled returns
• Incorrect income reporting

If you disagree with the balance, a CPA can file corrected returns or challenge the assessment.

✅ 2. Act Quickly — You May Still Avoid Enforcement

After CP504, the IRS is preparing to seize your state refund — but you still have time to:

• Set up a payment plan
• Request hardship status (CNC)
• Submit an Offer in Compromise
• Appeal before levy action expands

✅ 3. Respond in Writing or Through a CPA

Call volume is high and phone reps have limited authority. A written response or CPA-represented negotiation is often more effective.

✅ 4. Request a Payment Plan (Installment Agreement)

If you can pay over time, an Installment Agreement will stop levy action.

👉 FTB Offer in Compromise vs Installment Agreement – Which Is Better?

✅ 5. Qualify for Hardship Relief (CNC Status)

If paying would cause financial hardship, you may qualify for Currently Not Collectible (CNC) status, which temporarily pauses collections.

💼 How Boulanger CPA Helps Orange County Taxpayers

We help individuals and businesses in Irvine, Anaheim, Santa Ana, Fullerton, and surrounding areas:

• Interpret and respond to CP504 notices
• Stop IRS levies and wage garnishments
• Set up payment plans or submit Offers in Compromise
• File corrected or missing returns
• Communicate directly with the IRS on your behalf

📞 Call 657-218-5700
🌐 www.orangecounty.cpa

Frequently Asked Questions

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, based in Orange County, California.

With over a decade of experience helping individuals and businesses resolve serious IRS and State tax issues, Marc specializes in tax resolution strategies including Offers in Compromise, wage garnishment relief, and back tax compliance.

He is licensed as a Certified Public Accountant in both California and Oklahoma, and has a proven track record of helping clients settle complex tax debts and regain financial stability.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.