IRS Collection Notices: CP501, CP503, CP504 and LT11
Once the first bill arrives, the IRS collection notices follow a fixed order. Each notice in that order is a stronger reminder and the last ones warn about a levy on your pay or your bank account. You can ask for a payment plan at any step.
Each month, how much would a plan cost you? Find the cost in the calculator
In what order do IRS collection notices come?
On the notice, the code appears in a corner, either the top right one or the bottom right one. Each notice shows a due date and a toll-free number.
- CP14: the first bill you receive. It shows what you owe along with the date to pay by. See the CP14 page.
- CP501: a reminder that the balance is still unpaid.
- CP503: this one is a second reminder notice. So far the IRS has received neither a payment nor a reply from you.
- CP504: in this notice, the IRS says it intends to levy. It is the last reminder before the agency begins looking for assets.
- The last notice before a levy is an LT11 or Letter 1058 and it lists the hearing rights you have.
What is the meaning of the CP501 and CP503 notices?
Both notices tell you money is still owed and that nothing has come back to the IRS from you. The second reminder is the CP503 notice. The IRS may file a federal tax lien notice if you neither pay nor call. A lien is a public claim on your property and it can harm your credit.
You can still request a plan with Form 9465, either online or by mail. An appeal can be requested through the Collection Appeals Program at any time before collection begins.
What is the meaning of the CP504 intent to levy notice?
A CP504 goes out from the IRS as a warning that a levy is planned. A state tax refund of yours may be taken and the search may start for wages, bank accounts and other assets. Filing a lien is also possible. If the unpaid debt is large, your passport can be denied or taken back too.
Pay what you can right now as your first step. Next, call the number on the notice to ask about a plan.
What is the meaning of the LT11 and Letter 1058 notices?
One final notice goes out before the IRS takes property and that notice is the LT11 or Letter 1058. Levies can reach your wages, bank accounts, Social Security benefits and state tax refunds. Property such as a car or a home may be taken as well.
You have 30 days from the day you get it to request a hearing under Collection Due Process using Form 12153. In a hearing, Appeals can agree to a payment plan or to a different option. Send your financial statement, Form 433-A or 433-B and that will speed it up.
What does a payment plan do to stop the next notice?
After your tax returns are filed, you can request a plan at any step. The online payment agreement tool is the fastest route to approval for balances of $50,000 or less. In most cases the IRS holds off on levying while a plan request from you is open or your plan stays in place.
If no monthly payment works with your budget, look into hardship status or an offer in compromise.
Collection notice questions
Is the CP504 the last one?
No. The CP504 is the last reminder and the IRS looks for assets only after it. The last notice before a levy is either LT11 or Letter 1058 and it gives you 30 days to request a hearing.
Can the IRS take my paycheck after a CP504?
Before the IRS levies wages, it usually waits 30 days or more after sending the final notice, either LT11 or Letter 1058. Once a CP504 goes out, a state tax refund is one thing the IRS can take.
Will a tax lien disappear if you set up a payment plan?
No, a plan alone will not do it. A lien already on file usually stays in place until the debt is paid off in full. The rules it uses allow the IRS to withdraw it.
Did one of these notices reach you and can you not pay?
A licensed tax pro can review your notice, explain the time you have left and arrange a plan with you. Instead, put your number in the form.
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