Receiving an IRS CP504 Notice is serious. It is a Final Notice of Intent to Levy certain state tax refunds and a warning that the IRS may take additional collection actions if you do not respond.
👉See more videos on our channel about LITC Education and how CPA Clinics can help.
🚨 What CP504 Means
- The IRS has already sent earlier notices (CP14, CP501, CP503).
- CP504 is a final warning before stronger enforcement actions.
- The IRS intends to levy (seize) your state tax refund to cover unpaid federal taxes.
- It also warns of additional collection actions such as liens, levies, or wage garnishments.
- You are expected to pay immediately or contact the IRS to resolve the balance.
⚖️ Your Options After Receiving CP504
- Pay the balance in full to stop further penalties and interest.
- Set up a payment plan (Installment Agreement) with the IRS.
- Dispute the balance if you believe the IRS made an error.
- Request penalty relief if circumstances prevented timely payment.
- Seek professional representation if you cannot afford to resolve the issue alone.
⚠️ Common Complications
- Levy on State Refunds: The IRS can seize your state tax refund directly.
- Escalation to LT11/Letter 1058: If ignored, the IRS will issue a Final Notice of Intent to Levy, allowing them to seize wages, bank accounts, or property.
- Financial Hardship: Penalties and interest continue to grow, making balances harder to manage.
- Language Barriers: ESL taxpayers may not fully understand their rights or deadlines.
- Limited Resources: Low‑income taxpayers often cannot afford professional representation.
🛡️ How CPA Clinics (LITC) Helps
The Low Income Taxpayer Clinic (LITC) at CPA Clinics provides free or low‑cost representation for qualifying taxpayers. If you receive CP504:
- We review your IRS notice and financial situation.
- We explain your rights and options clearly.
- We assist in negotiating payment plans or requesting penalty relief.
- We represent you before the IRS if disputes escalate.
- We provide education for taxpayers who speak English as a second language (ESL).
📖 Commonly Asked Questions
Q1: Is CP504 the same as a levy notice?
👉 CP504 is a final warning that the IRS intends to levy your state tax refund. If ignored, the IRS may issue LT11/Letter 1058, which allows broader levies.
Q2: What happens if I ignore CP504?
👉 The IRS can seize your state tax refund and escalate to wage garnishments, bank levies, or property seizures.
Q3: Can I dispute the balance shown on CP504?
👉 Yes. If you believe the IRS made an error, CPA Clinics can help you file a dispute or request a Collection Due Process hearing if the issue escalates.
Q4: Do I qualify for LITC help?
👉 If your income is within IRS guidelines (≤250% of the federal poverty level) or you speak English as a second language, you may qualify for free representation.
Q5: What if I can’t pay anything right now?
👉 Options include requesting Currently Not Collectible status or applying for an Offer in Compromise. CPA Clinics can guide you through these processes.
Contact Us – We’re Here to Help
If you’ve received IRS CP504 Notice, act immediately. Relief and representation may be available.
📞 Phone: (516) 464‑7444
📧 Email: info@cpaclinics.com
🌐 Website: www.cpaclinics.com
📍 Locations: Bronx, Manhattan, Hempstead, Hicksville
