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 — especially if you respond to IRS CP504 in Orange County before enforcement begins.
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.
π 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
Certified notices are serious. Often, certified mail from the IRS usually means serious action is coming.
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
π§Ύ 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)
π 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
π What Happens If You Ignore IRS Notices
βοΈ How the CP504 Notice Fits in the IRS Collection Process
| Step | Notice | Description |
|---|---|---|
| 1 | CP14 | Balance due reminder |
| 2 | CP501 | First follow-up |
| 3 | CP503 | Second notice |
| 4 | CP504 | Intent to seize state refund + warning of levy |
| 5 | LT11 / Letter 1058 | Final notice before broader levy rights trigger |
| 6 | Enforcement | Bank levy, wage garnishment, etc. |
β What You Should Do After Receiving CP504
β 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.
β 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:
You can how to stop an IRS levy before it hits your accounts by setting proactive steps in place.
- Set up a payment plan
- Request hardship status (CNC)
- Submit an Offer in Compromise
- Appeal before levy action expands
β 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.
β 4. Request a Payment Plan (Installment Agreement)
If you can pay over time, an Installment Agreement will stop levy action.
π FTB Offer in Compromise vs Installment Agreement – Which Is Better?
β 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.
πΌ How Boulanger CPA Helps Orange County Taxpayers
We help individuals and businesses in Irvine, Anaheim, Santa Ana, Fullerton, and surrounding areas, respond to CP504 notices, stop levies and garnishments, and settle your IRS balance before enforcement escalates.
- 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
π Call
657-218-5700
π
www.orangecounty.cpa
Frequently Asked Questions
What is IRS Notice CP504?
CP504 is a Final Notice from the IRS warning that they intend to levy your state tax refund or other assets if you don’t act quickly.
Why did I receive a CP504?
You likely have a past-due IRS balance and haven’t responded to earlier notices. CP504 is a final step before collections escalate.
Is CP504 the same as a Notice of Intent to Levy?
No. CP504 warns of a levy on your state refund. The Notice of Intent to Levy (LT11) typically follows if no action is taken.
Can I stop the IRS from levying my refund?
Yes. You can pay the balance, enter a payment plan, or request another form of tax relief. A CPA can contact the IRS and negotiate quickly.
What happens if I ignore the CP504 notice?
The IRS may levy your state refund, escalate collection actions, or file a federal tax lien. Delaying will limit your options.
Why work with a CPA in Orange County?
A local CPA understands how to interpret your notices, contact the IRS on your behalf, and protect your income from further enforcement.
π£ About the Author
Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.
He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.
With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.
Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.
Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.
π Learn more at www.orangecounty.cpa or call (657) 218-5700.
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