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UrgentCP504

CP504: Intent to Levy Your State Tax Refund

The IRS plans to seize your state income tax refund. You have 30 days before the levy is executed.

Deadline

30 days from notice date

Do I owe money?

Yes

What does CP504 mean?

CP504 is a serious escalation notice. The IRS intends to seize (levy) your state income tax refund to satisfy your unpaid federal taxes. This is the final warning before the IRS begins seizing assets. CP504 also revokes your ability to get a passport. You have 30 days to pay in full, set up a payment arrangement, or request a Collection Due Process (CDP) hearing to stop the levy.

What should you do next?

  • 1Act within 30 days — this is the last notice before full levy action begins
  • 2Pay the full balance or set up an installment agreement immediately at IRS.gov/OPA
  • 3If you believe you don't owe the debt or need more time, call 1-800-829-1040 immediately
  • 4File Form 12153 to request a Collection Due Process (CDP) hearing if you want to formally dispute or propose alternatives
  • 5Note: receiving CP504 may flag your account for the IRS's Passport Denial/Revocation program for balances over $62,000

Frequently asked questions

Can the IRS really take my state tax refund?

Yes. Under the Federal Tax Lien Act, the IRS can intercept state income tax refunds through the State Income Tax Levy Program (SITLP). Once the levy is executed, the state sends your refund directly to the IRS.

Will CP504 affect my credit score?

Not directly — IRS tax liens no longer appear on credit reports (removed in 2018). However, if the IRS files a Notice of Federal Tax Lien, it becomes part of public record and can affect your ability to get loans or sell property.

I already set up a payment plan — why did I get CP504?

CP504 may have been generated before your payment plan was fully processed. Call 1-800-829-1040 with your installment agreement confirmation number to confirm it stopped the levy process.

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Last updated: 2026-05-18