Few IRS letters cause more panic than a Final Notice Before Levy — specifically, IRS CP504 or LT11. These notices mean the IRS intends to seize your property, wages, or bank account to collect unpaid taxes. Understanding the implications of an IRS CP504 or LT11 is crucial for your financial safety. Also, knowing how to deal with an IRS CP504 or LT11 notice is essential for protecting your assets. It is important to take these notices seriously and act promptly. Ignoring an IRS CP504 or LT11 can lead to severe consequences.
If you’ve received one, you’re running out of time — but you still have rights and options. Understanding what the notice means and taking prompt action can often stop a levy before it happens. Take the time to read the IRS CP504 or LT11 thoroughly to gain insight into your next steps. Remember, an IRS CP504 or LT11 notice is not just a routine letter; it demands immediate attention and action to avoid further penalties. Missing your response deadline, however, can trigger immediate enforcement.
What Is an IRS CP504 or LT11 Notice?
Don’t let an IRS CP504 or LT11 notice catch you off guard; know your rights and options. It is essential to review the details of your IRS CP504 or LT11 notice to understand your options. Both notices indicate that the IRS intends to enforce collection on a past-due balance.
- CP504 (Notice of Intent to Levy): Warns that the IRS may seize your state tax refund and begin levy actions if the balance remains unpaid.
- LT11 (Final Notice of Intent to Levy and Notice of Your Right to a Hearing): The most serious warning — it means the IRS plans to levy wages, bank accounts, or other property if you don’t act within 30 days.
These letters are part of the IRS’s final collection process, not an early reminder.
What Happens If You Ignore a Final IRS Notice?
If no action is taken, the IRS can legally:
- Seize your wages (wage garnishment)
- Freeze and drain your bank account
- Take your state tax refund
- File a federal tax lien against your property
- Seize vehicles or business assets
You’ll also continue to accrue interest and penalties until the balance is resolved.
Step-by-Step: What to Do When You Receive CP504 or LT11?
Step 1: Verify the Notice
Make sure the notice is genuine by checking your IRS account online at IRS.gov/account. Scammers often mimic IRS letters — a real IRS notice will include your full name, tax year, and notice number (top right corner).
Step 2: Note the Deadline
Both CP504 and LT11 typically give you 30 days from the date of the letter to take action before levy enforcement begins.
Step 3: Contact the IRS Immediately
If you agree you owe the balance, call the IRS (number on the notice) to discuss payment options. Acting quickly can delay or stop levy action.
Step 4: Request a Collection Due Process (CDP) Hearing
If you receive an LT11, you have the right to a Collection Due Process hearing within 30 days. Filing this appeal immediately halts levy activity until your case is reviewed.
Be proactive when handling an IRS CP504 or LT11 notice to minimize potential fallout.
Step 5: Explore Tax Relief Options
Depending on your situation, you may qualify for one of these programs:
- Installment Agreement (Payment Plan): Pay monthly over time — see IRS payment plans.
- Offer in Compromise: Settle for less than you owe if full payment causes hardship.
- Currently Not Collectible Status: Pause collection if you can’t pay due to financial hardship.
Step 6: Get Legal Help
If your case involves large balances, prior tax issues, or business payroll liabilities, an experienced tax attorney can communicate directly with the IRS to protect your assets and negotiate resolutions.
The Difference Between CP504 and LT11 Notices
| Notice Type | Description | What It Means |
|---|---|---|
| CP504 | IRS intends to seize your state tax refund | First serious warning |
| LT11 | Final notice before IRS levy on wages, bank, or property | Last chance to appeal or pay |
Both are urgent, but LT11 is your final opportunity to prevent a levy through appeal or payment negotiation.
How to Stop an IRS Levy Before It Starts?
To stop an IRS levy:
- Respond within 30 days of the notice
- Request a CDP hearing
- Enter into a payment agreement or relief program
- Have an attorney file a Power of Attorney (Form 2848) to represent you.
Acting fast – even by a few days – can make the difference between resolving your tax debt peacefully and losing access to your assets.
When to Call a Tax Attorney Immediately?
Contact a tax attorney if:
- You’ve already missed the 30-day deadline
- The IRS has frozen your bank account
- You’ve received multiple levy warnings
- You own a business with payroll tax debt or trust fund issues
Your attorney can negotiate directly with the IRS to release or delay a levy and structure a resolution plan that protects your income and property.
Seek Legal Help Today
A Final Notice Before Levy means time is running out — but you still have powerful legal rights. Whether through a payment plan, appeal, or relief program, there are ways to stop enforcement and resolve your tax issue.
If you’ve received a CP504 or LT11 notice, contact Pelham PLLC today. Our tax attorneys can analyze your situation, protect your assets, and work with the IRS to prevent a levy.
Learn more about these notices on the IRS CP504 page and IRS LT11 hearing rights page.
FAQs
What does an IRS CP504 notice mean?
A CP504 means the IRS intends to seize your state tax refund and may begin other collection actions if the balance isn’t paid.
What does an LT11 notice mean?
An LT11 is a Final Notice of Intent to Levy, warning that the IRS plans to levy wages, bank accounts, or property if no action is taken within 30 days.
How long do I have to respond before the IRS levies my assets?
You generally have 30 days from the notice date to request a hearing or arrange payment before the IRS begins enforcement.
Can I stop a levy once the IRS has started it?
Yes — but it becomes more complex. A tax attorney can help negotiate a levy release or payment agreement to lift the hold.
Can a tax attorney contact the IRS for me?
Yes. By filing IRS Form 2848 (Power of Attorney), your attorney can communicate directly with the IRS to resolve your case and stop collection actions.
