For many Connecticut taxpayers, an IRS CP504 notice doesn’t feel urgent at first. It looks similar to other IRS letters, uses vague language, and often arrives without any immediate consequences. That false calm is exactly why CP504 causes so much damage.

By the time CP504 is issued, the IRS has already made a key determination: voluntary compliance has failed. From that point forward, the agency is preparing to collect — not negotiate casually.

This article explains what CP504 actually means, why Connecticut taxpayers often underestimate it, and what must happen next to avoid enforced collection.

What Is an IRS CP504 Notice?

CP504 is commonly labeled “Notice of Intent to Levy — State Tax Refund.” While that title suggests the IRS is only targeting refunds, the reality is broader.

CP504 tells you:

  • The IRS has assessed tax debt

  • Prior notices were sent and ignored or unresolved

  • Your account is now eligible for enforced collection actions

This is one of the final steps before the IRS begins levies.

Why CP504 Changes the IRS’s Posture

Earlier IRS notices are billing attempts. CP504 marks a shift from requests to warnings.

Once CP504 expires, the IRS can:

  • Garnish wages

  • Levy bank accounts

  • Offset refunds

  • Escalate enforcement without further correspondence

Many Connecticut taxpayers assume the IRS must send another “final” notice. Often, CP504 is that notice.

How Much Time Do You Really Have?

CP504 typically provides 30 days to respond.

Those 30 days are not a suggestion. They are a legal threshold. Once the deadline passes:

  • Appeal rights may be lost

  • Collections may begin immediately

  • Negotiation leverage decreases sharply

Waiting for a “better time” usually results in fewer options.

Can the IRS Take Action Without Going to Court?

Yes. Unlike private creditors, the IRS does not need a court judgment to levy wages or bank accounts. Federal tax law grants that authority once required notice has been given — which CP504 satisfies.

Why CP504 Is Often Ignored in Connecticut

We see the same patterns repeatedly:

  • High earners assume they’ll “deal with it later”

  • Business owners prioritize cash flow over compliance

  • Taxpayers wait for an accountant who isn’t handling collections

  • Fear of contacting the IRS leads to inaction

Unfortunately, none of these delay enforcement.

What Happens After CP504 Is Ignored?

Once CP504 expires, the IRS may move quickly:

  • Wage garnishment orders sent to employers

  • Bank accounts frozen without warning

  • Liens filed against real property

  • Refunds intercepted automatically

At that point, stopping enforcement becomes far more difficult.

Resolution Options That May Still Exist

Even at the CP504 stage, options may include:

  • Installment agreements

  • Currently Not Collectible status

  • Penalty abatement

  • Offer in Compromise

  • Appeals or collection holds

The correct option depends on income, assets, filings, and timing.

The Real Cost of Waiting

Every day CP504 goes unanswered:

  • Interest compounds

  • Penalties increase

  • Stress escalates

  • The IRS gains leverage

What could have been a controlled resolution becomes reactive damage control.

When to Get Professional Help

If you’ve received CP504 and:

  • Owe more than $10,000

  • Have unfiled returns

  • Own a business or rental property

  • Have received multiple IRS notices

You should not wait.

Rappaport Tax Relief helps Connecticut taxpayers respond strategically to IRS escalation notices and stop enforcement before it begins.