These are escalating reminders for an unpaid balance. CP503 is an urgent second/third reminder. CP504 is more serious: a Notice of Intent to Levy — the IRS warns it can seize your state tax refund and begin the levy process. Importantly, CP504 is not the final levy notice that grants hearing rights — that’s the LT11 / Letter 1058, which comes next if you don’t act.
Deadline: respond by the date on the notice. After CP504, the next step is the Final Notice of Intent to Levy (LT11), which starts a 30-day clock to request a hearing — don’t let it get that far.
What to do now
- Pay the balance if you can (IRS.gov/payments) to stop the escalation.
- Can’t pay in full? Set up an installment agreement, request Currently Not Collectible, or an Offer in Compromise.
- Disagree with the balance? Send the letter below with proof, and call the number on the notice.
The letter
[Your name]
[Address]
[City, State ZIP]
[Daytime phone]
[Date]
Internal Revenue Service
[Use the address on your CP503/CP504 notice]
Re: [CP503 / CP504] notice - response
Name: [Your name] SSN/ITIN: [xxx-xx-1234]
Tax year / form: [year / form]
Notice date: [date] Balance shown: $[amount]
To whom it may concern:
I am responding to the [CP503 / CP504] notice above.
[ Choose what applies: ]
- I am paying the balance in full on [date] by [method].
- I cannot pay in full and am requesting [an installment agreement / Currently
Not Collectible status]; my request/Form [9465/433-F] is enclosed or being
filed.
- I dispute the balance because [reason]; proof is enclosed.
Please note my account accordingly and hold further collection while this is
processed. Please confirm receipt.
Sincerely,
[Signature]
[Printed name]
How to send it
Act before the deadline — CP504 means the levy process is starting. Send certified mail with return receipt to the address on the notice, and resolve quickly by phone if possible. If you set up a payment plan or other arrangement, get confirmation in writing.
Notes. The key distinction: CP504 can take your state refund and signals intent, but the 30-day right to a Collection Due Process hearing attaches to the later LT11/Letter 1058 (or a lien notice) — see the CDP hearing letter. Acting at CP503/CP504 keeps your options widest. General information, not tax advice.