IRS CP504 Letter Explained: Are You About to Be Levied?

by | Feb 2, 2026

ave you received a CP504 Notice from the IRS and aren’t sure what it means or what to do next? You’re not alone — and this step-by-step breakdown will help you understand exactly what this letter is, why you got it, and what actions you should take right now to protect your finances.

👉 Watch the full explanation here: https://youtu.be/0EhrgME3EMA


🔍 What Is a CP504 Notice?

A CP504 Notice is an important letter from the Internal Revenue Service that lets you know:

  • You still owe federal tax, and
  • The IRS is seriously moving toward collection action.

This isn’t just a reminder — it’s a final notice before enforced collection, such as wage garnishment, bank levies, or liens.


📌 Why You Got This Notice

The IRS sends a CP504 when:

✔ You didn’t pay your taxes by the original due date,
✔ You ignored previous notices and balances haven’t been resolved,
✔ There’s an unresolved balance after penalties and interest.

This notice usually comes 60–120 days after earlier notices, so by this point, the IRS expects you to take action.


⚠️ What Happens If You Do Nothing

If you don’t respond or resolve the balance, the IRS can move closer to legally beginning:

  • Wage garnishment – taking money directly from your paycheck
  • Bank levy – withdrawing funds from your accounts
  • Federal tax lien – claiming legal rights against your property

This makes a CP504 notice serious.


🛠 What You Should Do Next

Step 1: Don’t panic. You still have options.

Step 2: Confirm the balance.
Check your IRS Online Account or call the IRS to confirm the amount listed on the notice.

Step 3: Evaluate your options (this is where strategy matters):

Pay the balance in full
Request a payment plan (installment agreement)
Submit an Offer in Compromise (if eligible)
Ask for penalty abatement (first-time or reasonable cause)
Get professional help (recommended if the amount is large or complex)


👍 Why This Video Can Help

In this video, I walk through:

✔ What the IRS is telling you
✔ How to troubleshoot common mistakes
✔ When to get expert help

👉 Click to watch: https://youtu.be/0EhrgME3EMA


Need Help With Your IRS CP504 Notice?

If you’d like a professional review of your notice and your IRS account, or help applying for a payment plan, penalty abatement, or other resolution options, I can help.

📩 Drop a comment on the video
📞 Or book a consultation Tax Relief Consultation – Jablonsky Tax Relief

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Bob Jablonsky

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