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 can open the 30-day window to protect your appeal rights (IRC §6330(a)(3)(B)).
| 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, for the first levy notice with hearing rights for the tax and tax period — filing Form 12153 within 30 days generally stops levy for the periods on the notice and preserves the right to Tax Court review (IRC §6330(a)(3)(B); Treas. Reg. §301.6330-1, A-B2) |
| Response deadline | The date printed on the notice | 30 days from the notice date to file Form 12153, if this is the first levy notice with hearing rights for the tax and tax period or it covers added tax or certain penalties (IRC §6330(a)(3)(B); Treas. Reg. §301.6330-1, A-B4, A-D1) |
| 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, unless an LT11-family notice already went out for that period | IRS may levy wages, bank accounts, and other property with no further hearing notice; a late request filed within one year starting the day after the notice date (Treas. Reg. §301.6330-1(i)(2)) can get an Equivalent Hearing if the taxpayer says so, and it does not automatically pause levy and does not 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, unless you already got the LT11 letter described next for the same tax year. 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 (IRC §6330(a)(2)).
The first LT11 letter for a tax period gives you 30 days to ask for a hearing (IRC §6330(a)(3)(B); Treas. Reg. §301.6330-1, A-B2); for a CP504, act by the date on your notice, because the two letters 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 generally stops the IRS from levying (taking wages or bank funds) for the tax and tax periods on this letter while the hearing is pending. The IRS can still file a lien notice or take refunds (Treas. Reg. §301.6330-1, A-G3).
If you're holding a CP504, take it seriously, but you may not be out of time on the bigger protections. First check whether an LT11 or Letter 1058 already went out for this balance. If you're holding the LT11 letter, file Form 12153 within the 30 days (IRC §6330(a)(3)(B)); filing also stops the IRS's 10-year clock to collect (IRC §6330(e)(1)), which gives the IRS more time and matters mainly if that clock is nearly out. 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.
Want the whole sequence? See all five IRS balance-due notices in order — CP14, CP501, CP503, CP504, and LT11 or Letter 1058.
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.
Why practitioners confuse the two
A common, costly 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, unless one of those already went out for the same tax period (IRC §6330(a)(1) requires it only once per period, though a later additional assessment for the period needs a new one).
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 — levy hearing rights attach at the first LT11/Letter 1058/CP90/CP297 for the period, unless a post-levy notice such as a CP 92 or CP 242 came first (IRM 5.1.9.3.13); a lien filing opens its own (Letter 3172).
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 unless the CSED is near: a timely request generally stops the levy for the periods on the letter but also suspends the collection statute while the hearing and any appeal are pending (IRC §6330(e)(1)). Bring a specific proposal to the hearing rather than an objection: size a collection alternative before walking in, review the client's 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 letter, usually a later one. The IRS generally has to send it only once for a tax year, so if you already got one for that year, another is usually not required, unless the IRS later assesses more tax for that year.
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 (IRC §6330(a)(3)(B)).
I got both letters for the same balance — which deadline controls?
Both. They are separate notices with separate deadlines. 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.