What Happens If You Ignore an IRS CP504 Notice?
If you need the full explanation first, read: IRS CP504 Notice Explained.
What Happens After CP504?
If the balance remains unpaid, the IRS may continue escalating collection efforts.
- Additional collection notices may be sent
- Penalties and interest continue growing
- The IRS may pursue levy action
Can the IRS Seize Money or Property?
CP504 warns that the IRS may levy certain assets or apply refunds toward unpaid taxes if the balance is not resolved.
Does the Debt Keep Growing?
Yes. Interest and penalties generally continue until the balance is paid or resolved.
Can You Still Resolve the Problem?
Yes. Many taxpayers can still arrange payments or contact the IRS to discuss options.
See available options here: How to respond to CP504.
Bottom Line
Ignoring CP504 can increase the risk of more aggressive IRS collection actions. Acting early usually gives you more options and lower costs.
Disclaimer: Informational only.
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25 years of experience managing tax, accounting, payroll, and employment-related information portals. Editor of Accounting Portal since 2011.
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