A CP504 notice is a formal Notice of Intent to Levy under Internal Revenue Code section 6331(d). This is a significant escalation from earlier reminder notices.
What Triggered This Notice
Per IRS.gov: “You received this notice because we haven’t received payment of your unpaid balance.” The notice states the IRS can seize your state tax refund and warns of broader levy action.
Your Deadline
The notice demands action immediately — it does not give a fixed grace period like earlier notices. It states: “If you don’t pay the amount due immediately or make payment arrangements, we can file a Notice of Federal Tax Lien.”
What Happens If You Miss It
Per IRS.gov, consequences include: filing of a Notice of Federal Tax Lien, levy of state tax refunds, and seizure of wages, bank accounts, real estate, business assets, vehicles, and other property. Passport denial or revocation under the FAST Act is also possible for seriously delinquent debt — see CP508C.
What To Do
Pay immediately or set up a payment arrangement before the levy proceeds. For businesses with a lien already filed, conventional bank financing is usually off the table — financing that pays the IRS directly is often the only way to stop enforcement fast enough.
Source: IRS.gov — Understanding Your CP504 Notice
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