Leatherneck BookkeepingCall (208) 614-1965Got IRS notice CP504? Here's what it means.
CP504: Notice of intent to levy.
What it means
The IRS is warning it can levy your state tax refund and other property if the balance isn't handled. This is serious.
What happens if you ignore it
A final notice with appeal rights (LT11 or Letter 1058) usually comes next, and then wage or bank levies can start.
What to do now
- Don't ignore it. Note the response date on the notice.
- Check the years and amounts against your records.
- Call us. We'll pull your transcripts with Form 8821 and help you respond or join your IRS call.
- Free call. Tell us what letter you got or what's being taken.
- Form 8821. You sign it, and we pull your IRS transcripts so we can see exactly what the IRS sees: balances, years, unfiled returns, and notices.
- A plan in plain English. We explain your options (payment plan, hardship, penalty relief, filing missing returns) and what the IRS will need from you.
- We prepare the paperwork with you: financial statements, missing returns, and letters.
- We get on the phone with you. When you call the IRS, we join the call and help you. You speak for yourself, and we're right there.
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Call (208) 614-1965Request a free consultationCommon questions
Is this notice real?
Real IRS notices come by mail, have a notice number in the corner, and point to irs.gov. The IRS doesn't demand payment by gift card or wire. If you're unsure, we can check it against your IRS transcripts.
Can you call the IRS for me?
We join your call and help you, but you speak for yourself. We don't represent clients before the IRS.
Can the IRS take my tax refund?
Yes. The IRS applies federal refunds to back taxes it's owed. After a CP504 notice, it can also levy your state tax refund. Source: IRC § 6402; IRS CP504 notice page
Can the IRS levy my bank account and my paycheck at the same time?
Yes. The IRS can use more than one levy at once. A wage levy keeps going every payday until it's released; a bank levy takes what's in the account the day the bank gets it. Source: IRC § 6331(e); IRS 'How do I get a levy released?'
Can I be fired over an IRS wage levy?
Federal law (Consumer Credit Protection Act, 15 U.S.C. § 1674) says an employer can't fire you because your pay is being garnished for one debt. That protection doesn't cover you if your pay is garnished for two or more separate debts, and some states add more protection. If you think you were fired over a garnishment, talk to the U.S. Department of Labor Wage and Hour Division or an employment attorney. Source: 15 U.S.C. § 1674; dol.gov Fact Sheet #30
Related help
Leatherneck Bookkeeping is not a law firm and does not represent clients before the IRS or any state tax agency. With your signed IRS Form 8821, we can pull your IRS transcripts and receive copies of your IRS notices. When you call the IRS, we join the call and help you, but you speak for yourself. Results depend on your facts and IRS rules; no outcome is guaranteed.