Glossary

Notices CP501, CP503, and CP504

Notices CP501, CP503, and CP504 are the IRS reminder sequence for an unpaid balance, escalating from a first reminder to a notice that the IRS intends to levy state tax refunds and may file a lien.

How it works

After a CP14 goes unpaid, the IRS sends CP501 (first reminder), CP503 (second reminder), and CP504 (notice of intent to levy state tax refunds and possible lien filing). CP504 is often mistaken for a final levy notice; it allows the IRS to take a state refund but is not the notice that permits a levy on wages or bank accounts. That comes as Letter 1058 or LT11.

Why it matters

Each notice is a chance to set up a payment arrangement before enforced collection begins.

Related: CP14, final notice of intent to levy. Read more: responding to a CP503.

Guides that cover notices CP501, CP503, and CP504

Related terms

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Where this comes up in our work

IRS audit defense

From the first notice to the last letter, with a power of attorney so the IRS talks to us.

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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