The IRS CP504 notice is the Final Collection Notice and Notice of Intent to Levy sent to taxpayers who have not responded adequately to previous collection attempts. This notice serves as your last opportunity to resolve your tax debt voluntarily before the IRS begins seizing bank accounts, garnishing wages, and taking other assets to satisfy your unpaid tax obligations.

Critical Features of the CP504 Notice:

• Final notice before asset seizure begins
• Intent to levy all your property and rights to property
• 30-day Collection Due Process hearing rights period
• Federal tax lien filing imminent or already completed
• Specific collection actions the IRS will take
• Last chance for voluntary resolution
• Emergency contact information for immediate action

You received this final notice because:

Complete Non-Response to Collection Efforts

• CP501 first collection notice was ignored
• CP503 second collection notice received no adequate response
• Multiple opportunities for voluntary resolution were not taken
• No payment arrangements were made or maintained

Collection Process Exhaustion

• Administrative collection procedures are nearly complete
• Voluntary compliance efforts have failed
• Enforcement phase is beginning immediately
• Collection mandate requires asset seizure authorization

Escalated Financial Obligation

• Significantly increased balance due to accumulated penalties and interest
• Collection costs are being added to your debt
• Federal tax liens have likely been filed
• Asset seizure authorization has been obtained

Asset Seizure Authority
The CP504 notice gives the IRS broad authority to seize:

Bank Accounts:

• All checking and savings accounts
• Business accounts and operating funds
• Joint accounts even if only one spouse owes
• Investment accounts and brokerage assets

Wages and Income:

• Salary and wage garnishment up to 70% of disposable income
• Business income and accounts receivable
• Rental income from properties
• Commission and contract payments

Real Estate:

• Primary residence seizure and forced sale
• Investment properties and vacation homes
• Business real estate and commercial properties
• Land and undeveloped property

Federal Tax Lien Impact
By the CP504 stage, federal tax liens have usually been filed:

• Credit score devastation typically 100+ point drop
• Public record visible to all creditors and employers
• Priority claim over most other debts
• Prevents property sales without IRS approval
• Affects business credit and commercial relationships

Collection Due Process (CDP) Hearing Rights
You have exactly 30 days from the CP504 notice date to request a CDP hearing:

Automatic Collection Stay:

• All levy actions are suspended during hearing process
• Asset seizures cannot proceed while hearing is pending
• Bank levies must be released if already initiated
• Wage garnishments are halted during proceedings

Hearing Opportunities:

• Challenge the underlying tax liability
• Dispute collection procedures used by the IRS
• Propose alternative collection methods
• Present economic hardship arguments
• Negotiate settlement terms through Appeals Officer

Emergency Payment Options

Full Payment (Immediate Resolution)

• Completely prevents all collection actions
• Releases any existing bank levies immediately
• Stops penalty and interest accumulation permanently
• Restores normal relationship with IRS

Substantial Partial Payment

• Demonstrates serious commitment to resolution
• May secure temporary collection delays
• Provides negotiating leverage for arrangements
• Shows ability to make meaningful payments

After the 30-day period expires without response:

Immediate Collection Actions

• Bank account levies begin without additional notice
• Wage garnishments start with your next paycheck
• Asset seizure notices sent to third parties
• Property seizure scheduling begins

No Additional Warnings

• Collection actions proceed without further notice to you
• Assets can be seized at any time
• Appeals rights become very limited
• Resolution options are drastically reduced

Exponential Cost Increases

• Collection fees added to your debt for every action taken
• Asset seizure costs charged to your account
• Legal fees for forced property sales
• Interest and penalties continue accumulating on all amounts

Within 24 Hours

1. Read the notice completely and identify all deadlines
2. Calculate total amount needed for full resolution
3. Assess immediate payment capabilities
4. Contact qualified tax professional for emergency assistance
5. Begin gathering financial documentation

Within 7 Days

1. File Form 12153 to request Collection Due Process hearing
2. Contact IRS if full payment is possible immediately
3. Organize financial information for payment arrangement proposals
4. Prepare hardship documentation if applicable
5. Secure professional representation for CDP hearing

Within 30 Days

1. Ensure CDP hearing request was received and processed
2. Prepare comprehensive alternative collection proposals
3. Gather all supporting documentation for hearing
4. Develop negotiation strategy with professional guidance
5. Maintain current year tax compliance

Installment Agreements
Even at this late stage, payment plans may be available:

• Direct debit required for most agreements
• Financial disclosure mandatory for most arrangements
• Higher setup fees apply
• Stricter compliance requirements

Offers in Compromise
Settlement for less than full amount:

• Strict eligibility criteria must be met
• Comprehensive financial package required
• Application fees and payments needed
• Processing can take 12-18 months

Currently Not Collectible
Temporary suspension for genuine hardship:

• Detailed financial disclosure required
• Proof of inability to pay basic living expenses
• Temporary protection with periodic reviews
• May not prevent lien filing

Collection Procedure Challenges

• Procedural errors by IRS can invalidate collection actions
• Due process violations may provide leverage
• Incorrect calculations or improper notices
• Statute of limitations issues