CP504 vs. LT11: What's the Difference?
By Forrest Baumhover, CFP®, EA · Last verified September 1, 2026
CP504 and LT11 (also issued as Letter 1058, CP90, or CP297) are both levy warnings, but only one of them actually authorizes the IRS to take your wages or bank account — and only one of them opens the 30-day window to protect your appeal rights.
| CP504 | LT11 / Letter 1058 / CP90 / CP297 | |
|---|---|---|
| What the IRS calls it | "Notice of Intent to Levy" | "Final Notice of Intent to Levy and Notice of Your Right to a Hearing" |
| What it actually authorizes right now | A levy on a state tax refund only, through the State Income Tax Levy Program | A levy on wages, bank accounts, and other property |
| Collection Due Process hearing rights? | No — satisfies the IRC §6331(d) notice requirement, but carries no hearing right | Yes — filing Form 12153 within 30 days pauses levy and preserves the right to Tax Court review |
| Response deadline | 30 days from the notice date | 30 days from the notice date to file Form 12153 |
| If you miss the deadline | IRS may take an expected state refund, file a Notice of Federal Tax Lien, and refer a large balance for passport certification — wages and bank accounts are not yet exposed | IRS may levy wages, bank accounts, and other property with no further notice; a late request usually converts to an Equivalent Hearing, which does not pause levy or preserve Tax Court review |
| Where it sits in the notice sequence | Usually follows an unanswered CP14, CP501, and CP503 | Issues after CP504 (and the full balance-due stream) without a resolution — this is the notice CP504 is often mistaken for |
If you got this letter
Not Sure Which Letter You Have?
Look at the top of the letter. If it says "CP504" or "Notice of Intent to Levy," the IRS can only take a state tax refund you might be owed right now — it cannot yet touch your paycheck or bank account. If it says "LT11," "Letter 1058," "CP90," or "CP297" (we'll call this one the LT11 letter, since all four names mean the same thing), this is the more serious letter: it means the IRS can take money directly from your paycheck or bank account once 30 days pass, unless you act.
Both letters give you 30 days from the date on the letter, but they ask for different things. A CP504 does not require any specific form — you have options like paying, setting up a payment plan, or disputing the amount. The LT11 letter asks for one specific form, Form 12153, and filing it on time is what stops the IRS from taking your money while your case is reviewed.
If you're holding a CP504, take it seriously, but you are not out of time yet on the bigger protections — those come with the LT11 letter, if one follows. If you're holding the LT11 letter, file Form 12153 before doing anything else; you can work out payment options afterward, at the hearing. The Federal Tax Desk's IRS Penalty Relief Kit has the letter templates and walkthrough if a CP504 is what you're holding and you can't pay in full.
Got both letters for the same balance? Respond to both, each on its own deadline — they're separate mailings on separate clocks, and only the LT11 letter carries the Form 12153 hearing right.
The difference in one sentence
CP504 satisfies the IRS's IRC §6331(d) notice requirement but only clears the way for a state tax refund levy and carries no Collection Due Process hearing rights; LT11, Letter 1058, CP90, and CP297 are the same notice under four labels, and that notice is the one that actually authorizes a wage or bank levy under §6331(d) and opens the 30-day IRC §6330 hearing window that expires with it.
Why practitioners confuse the two
The most common and most expensive mistake is treating CP504 as "the final notice before levy." It is not — its own bite reaches only a state tax refund. A client who responds carefully to CP504 and then ignores what follows has not protected themselves: the wage- and bank-levy authority, and the Collection Due Process hearing rights that come with it, are both still ahead, on LT11 or Letter 1058.
The mirror-image error is just as expensive. A practitioner who believes CP504 already exhausted the client's CDP rights will not file Form 12153 when the LT11-family notice arrives, because they think the window closed months ago. It did not — those rights attach only at the LT11/Letter 1058/CP90/CP297 stage, never earlier.
What to do for each
For a CP504: verify the balance against the account transcript before doing anything else — a late-applied payment or a return still processing can inflate the number. If the balance is correct and full payment isn't realistic, size an installment agreement with The Federal Tax Desk's IA Payment Calculator, or pursue Currently Not Collectible status or an Offer in Compromise if the client genuinely cannot pay or disputes the liability. Form 9423 (Collection Appeals Program request) is available if the client disputes the collection action itself, separate from CDP hearing rights.
For an LT11, Letter 1058, CP90, or CP297: file Form 12153 first, and analyze second — it costs almost nothing, stops the levy clock, and buys the weeks needed to build the actual case. Bring a specific proposal to the hearing rather than an objection: size a collection alternative before walking in, pull the account transcript to confirm which periods the notice covers, and check the collection statute expiration date before deciding how hard to push back.
Common Questions
Is CP504 the final notice before the IRS can levy my paycheck or bank account?
No. CP504 only authorizes a state tax refund levy. The notice that actually authorizes taking wages or bank accounts is LT11, Letter 1058, CP90, or CP297 — a separate, later letter.
Do I need to file Form 12153 in response to a CP504?
No. Form 12153 is the response to LT11, Letter 1058, CP90, or CP297, not to CP504. CP504 carries no Collection Due Process hearing right to request.
What if I already responded to my CP504 — am I protected from a wage or bank levy?
Not automatically. Responding to CP504 addresses only the state-refund-levy warning it carries. If an LT11, Letter 1058, CP90, or CP297 arrives later for the same balance, you still need to file Form 12153 within 30 days of that letter to protect against wage and bank levy.
I got both letters for the same balance — which deadline controls?
Both. They are separate notices on separate 30-day clocks. Only the LT11/Letter 1058/CP90/CP297 deadline carries the Form 12153 hearing right, so treat that one as the higher-stakes deadline, but don't ignore either letter.