If you’ve received multiple IRS collection letters — particularly CP504 and LT11 (or Letter 1058) — it’s normal to feel confused or alarmed. Both notices use threatening language like “Intent to Levy” and “Seizure of Property,” but they carry very different legal weight.
Here’s the bottom line:
- The CP504 is a warning — it means the IRS intends to levy your state tax refund and may file a Federal Tax Lien.
- The LT11 / Letter 1058 is a final legal notice — it means the IRS has full authority to levy your wages, bank accounts, and property if you don’t act within 30 days.
📘 Official IRS References: Understanding your IRS notice or letter
CP504 vs. LT11 / Letter 1058: Quick Summary
| Notice | Purpose | Enforcement Power | Your Right to Appeal |
|---|---|---|---|
| CP504 | Earlier notice of intent to levy; usually follows CP14, CP501, CP503. | Primarily limited to seizing a state income tax refund. | No formal CDP rights |
| LT11 / Letter 1058 | Final notice of intent to levy; follows previous reminders (CP501, CP503, CP504). | Full legal levy authority. Grants the IRS the legal right to levy most assets (wages, bank accounts, personal property, state refunds, etc.). | Yes — 30-day CDP hearing right |
💡 Insight: The LT11 is the last stop before enforcement — and the only letter that gives you full legal appeal rights.
Understanding the IRS Notice Sequence
The IRS sends notices in a specific sequence — each one escalating in seriousness.
| Notice Type | Description |
|---|---|
| CP14 | Initial balance due notice |
| CP501 | First reminder |
| CP503 | Urgent second reminder |
| CP504 | Intent to levy state refund — “Final Notice” before federal enforcement |
| LT11 / Letter 1058 | Final legal notice of intent to levy wages, accounts, and property |
💡 Tip: Many taxpayers mistake CP504 as the final stage — but legally, LT11 is the notice that triggers the IRS’s levy rights under federal law.
IRS CP504 Notice Explained
The CP504 Notice, titled “Intent to Levy – Notice of Your Right to a Hearing,” is sent when you haven’t paid or arranged payment after earlier CP letters.
What It Means:
- The IRS intends to levy your state refund to collect your balance.
- The IRS may file a Federal Tax Lien if you don’t act.
- You have 30 days to respond before enforcement begins.
What It Does Not Mean:
- The IRS cannot yet levy wages, bank accounts, or property.
- It does not grant the right to a formal Collection Due Process (CDP) hearing.
💡 Tip: CP504 is your last informal chance to contact the IRS and arrange a payment plan before your case escalates to full enforcement.
IRS LT11 / Letter 1058 Explained
IRS Notice LT11 (or Letter 1058) is a final, legally mandated warning titled “Final Notice of Intent to Levy and Notice of Your Right to a Hearing“. It is sent under the authority of IRC § 6330(a) and IRC § 6331, informing the taxpayer of the IRS’s intent to seize property to satisfy an unpaid tax debt.
What It Means:
- The IRS now has authority to seize your wages, bank accounts, and property.
- You have 30 days to request a Collection Due Process (CDP) hearing using Form 12153.
- If you don’t respond, the IRS will proceed with levies, garnishments, and possibly liens.
💡 Insight: Once LT11 is issued, time is your most valuable defense tool — because after 30 days, the IRS can legally start taking your assets without court approval.
What Happens If You Ignore Each Notice?
Ignoring IRS Notices CP504 and LT11 results in escalating penalties and enforcement actions, ultimately leading to the seizure (levy) of your assets (wages, bank accounts, personal property) and the filing of a federal tax lien.
| If You Ignore CP504 | If You Ignore LT11 |
|---|---|
| IRS levies your state refund | IRS can levy your bank accounts, wages, and property |
| IRS may file a Federal Tax Lien | IRS may seize business or personal assets |
| Limited appeal rights | Full legal enforcement |
How to Respond to CP504 and LT11 Notices?
1️⃣ Verify the Amount Owed
Request an IRS Account Transcript online. Check for errors, unposted payments, or penalties that qualify for abatement.
📘 Reference: IRS Account Transcript online
2️⃣ File for a Collection Due Process (CDP) Hearing
If you received an LT11, file Form 12153 within 30 days. This stops all IRS collection activity until your appeal is reviewed.
📘 Reference: Form 12153 — Request for CDP Hearing
3️⃣ Explore Resolution Options
Explore collocational alternative options.
| Option | Best For | What It Does |
|---|---|---|
| Installment Agreement | Those who can afford monthly payments | Prevents levy; allows structured payments |
| Offer in Compromise | Those who cannot pay full balance | Settles for less than owed |
| Currently Not Collectible (CNC) | Those facing financial hardship | Halts collection temporarily |
| Penalty Abatement | Those with reasonable cause | Reduces balance due |
4️⃣ Involve a Tax Attorney Immediately
Tax attorneys can:
- File emergency appeals or hearing requests
- Contact the IRS Automated Collection System (ACS) or Revenue Officer directly
- Negotiate alternative resolutions
- Protect your income, property, and credit
Why Legal Representation Matters After CP504 and LT11?
Legal representation is crucial after receiving IRS Notices CP504 and LT11 because these letters indicate the IRS is moving toward aggressive enforcement actions, including seizures of wages, bank accounts, and property. A tax professional can protect your rights, halt collection activities, and negotiate a viable resolution on your behalf.
| Situation | Attorney Action | Outcome |
|---|---|---|
| Received CP504 | Negotiate installment or hardship relief | Prevents escalation |
| Received LT11 | File Form 12153 and freeze enforcement | Stops levy immediately |
| Facing Wage Garnishment | Contact IRS ACS or RO for release | Protects income |
| Threat of Asset Seizure | Submit OIC or CNC | Protects property |
| Penalties Accumulating | File penalty abatement request | Reduces total debt |
📘 Reference: Form 2848 – Power of Attorney
LT11 Is the Line Between Warning and Enforcement
The CP504 is serious, but the LT11 / Letter 1058 is the true legal turning point in the IRS collection process. Failing to respond in time can result in:
- Wage garnishment
- Bank levies
- Public tax liens
- Business or property seizure
But with immediate legal action, you can:
- Stop IRS enforcement before it starts
- Protect your income and assets
- Negotiate a fair payment or settlement
- Rebuild compliance and financial peace
Contact Pelham PLLC today for a confidential IRS notice review. Our tax attorneys will:
- Analyze your CP504 and LT11 notices
- File urgent appeals to freeze enforcement
- Negotiate affordable resolutions or settlements
- Protect your property, wages, and financial future
Don’t wait for the IRS to act — your 30-day window is your legal shield.
FAQs
Are CP504 and LT11 the same thing?
No. CP504 is a warning, while LT11 / Letter 1058 is the final legal notice before levy.
How much time do I have to respond to LT11?
You have 30 days to file Form 12153 for a Collection Due Process (CDP) hearing.
Can the IRS levy my paycheck after CP504?
Not yet — but after LT11, yes, if you take no action.
Can I still appeal after missing the LT11 deadline?
Yes, through an Equivalent Hearing, which pauses enforcement during review.
