Got a CP504 Notice in Fort Lauderdale? What It Means and What to Do Next
A CP504 is the IRS notice of intent to levy. Here is what it means, what the IRS can take, and the steps Broward County taxpayers should take right now.
If you live in Fort Lauderdale or anywhere in Broward County and just opened a CP504 from the IRS, take a breath. This notice is serious, but it is not the end of the road. You still have options, and the sooner you act, the more of them you keep.
What is a CP504?
A CP504 is the IRS "Notice of Intent to Levy." It usually comes after you have already received earlier balance due notices like the CP14 and CP501 or CP503. It tells you that you still owe, and that the IRS intends to start collecting by force if the balance is not paid or resolved.
What can the IRS take after a CP504?
After a CP504, the IRS can levy your state tax refund. It is also one step away from taking bigger actions, like levying your bank account or garnishing your wages. Before those larger levies, the IRS is generally required to send a Final Notice of Intent to Levy (LT11 or Letter 1058), which gives you 30 days to request a Collection Due Process hearing. That window is one of your most valuable rights, so do not let it pass.
What to do right now
- 1. Do not ignore it. Interest and penalties keep growing every month the balance sits there.
- 2. Check the amount. Make sure the balance and tax years match your records. Mistakes happen.
- 3. Make sure your returns are filed. The IRS will not approve most resolution options until all required returns are filed.
- 4. Get your financial picture together: income, monthly expenses, bank balances, and assets. Every resolution option is based on these numbers.
- 5. Talk to a licensed representative before you call the IRS yourself. What you say on that call can limit your options.
Your resolution options
Depending on your situation, the main paths are:
- Installment agreement: a monthly payment plan with the IRS.
- Offer in Compromise: settling for less than you owe if you cannot realistically pay the full amount.
- Penalty abatement: removing penalties if you have a clean history or a reasonable cause.
- Currently Not Collectible status: pausing collection if paying would leave you unable to cover basic living expenses.
How PDJ Tax Experts helps
PDJ Tax Experts is an Enrolled Agent led firm based in Pembroke Pines, serving Fort Lauderdale and all of Broward County, with appointments by phone and secure video. As an Enrolled Agent, Chardley Point Du Jour is federally licensed to represent taxpayers before the IRS in all 50 states. We pull your IRS transcripts, confirm what you actually owe, and negotiate directly with the IRS for the resolution you qualify for.
Frequently Asked Questions
Is a CP504 the final notice?
No. A CP504 is serious, but the IRS generally must send a Final Notice of Intent to Levy (LT11 or Letter 1058) before levying wages or bank accounts. That final notice comes with Collection Due Process hearing rights.
Can the IRS take my paycheck after a CP504?
Wage garnishment usually comes after the final notice, not the CP504 itself. Acting at the CP504 stage gives you the most room to resolve the balance before that happens.
Can I set up a payment plan after a CP504?
Yes. Installment agreements are still available, and so are other options like an Offer in Compromise or penalty abatement, depending on your situation.
Talk to an Enrolled Agent. Book a free 15 minute case review.
Results vary by case. Prior outcomes do not guarantee or predict similar results in your situation. Nothing on this page is tax, legal, or financial advice. PDJ Tax Experts LLC is a private tax firm and is not affiliated with, endorsed by, or acting on behalf of the IRS or any government agency.