What an IRS CP504 Notice Means
The CP504 tells you the IRS intends to levy your wages, bank accounts or state tax refund. This power comes from section 6331(d) of the Internal Revenue Code. Additionally, the IRS will begin searching for other assets it can levy.
The notice also covers your passport. Under the FAST Act, a seriously delinquent tax debt can lead to your passport being denied or revoked.
What the IRS Can Do If You Don’t Pay
Those warnings turn into real steps if the balance stays unpaid. Here’s what the IRS can do.
| IRS action | What it means for you |
|---|---|
| File a Notice of Federal Tax Lien, if one isn’t already filed | A lien is the government’s legal claim on your property. The notice is public, alerts creditors, and can make it harder to get credit or sell or borrow against property. |
| Seize your state tax refund | The IRS can keep your state refund and apply it to what you owe. |
| Send a notice of your right to a hearing | If you haven’t received one, you get the right to a hearing before the IRS Independent Office of Appeals. |
| Levy other property | This can include wages, real estate commissions and other income, bank accounts, business assets, personal assets like your car and home, and Social Security benefits. |
Source: Internal Revenue Service
What to Do Now
Read your notice carefully first, since it lists your balance and the toll-free number to call. Then find your situation below.
| Your situation | What to do |
|---|---|
| You can pay the full balance | Pay immediately online, or mail a payment in the included envelope with the bottom part of your notice. |
| You can’t pay in full | Pay what you can, then call the toll-free number on your notice about a payment plan. |
| You want a plan approved quickly | Use the IRS Online Payment Agreement tool, the fastest way to get an installment agreement (a plan to pay your balance over time) approved. |
| You owe $50,000 or less in combined tax, penalties and interest, and filed all required returns | You can apply online for a long-term payment plan. |
| You owe less than $100,000 | You can apply online for a short-term plan of 180 days or less. |
Source: Internal Revenue Service
You can also request a plan with Form 9465 Installment Agreement Request. Act soon, because penalties and interest keep adding up until you pay in full.
Learn more about how an IRS payment plan works. If a payment plan still won’t fit your budget, read about an offer in compromise.
If You Disagree or Already Paid
If you think the notice is wrong, call the toll-free number on it. If you already paid or already have an installment agreement, call anyway to make sure your account shows it.
You can also request an appeal through the Collection Appeals Program (CAP) before the IRS takes collection action. Follow the instructions on your notice to do this. For a full walkthrough, see IRS Publication 594, The IRS Collection Process.
