Does a CP504 mean the IRS can take my wages?

Not immediately. A CP504 authorizes the IRS to levy your state tax refund right away. Before the IRS can garnish wages or levy bank accounts, it must send an additional notice — the LT11 or Letter 1058 (Final Notice of Intent to Levy) — which gives you 30 days and the right to request a Collection Due Process hearing. That hearing stops all levy activity while your case is reviewed.

Can a CP504 affect my passport?

Yes. The CP504 references the Fixing America's Surface Transportation (FAST) Act, which allows the State Department to deny or revoke a passport when the IRS certifies a taxpayer as having seriously delinquent tax debt. In 2026, seriously delinquent debt is generally defined as $62,000 or more in assessed taxes, penalties, and interest. If you receive a CP504 and have a large balance, passport issues are a real risk.

What is the difference between a CP504 and a CP504B?

A CP504 is sent to individual taxpayers regarding personal income tax debt. A CP504B is the business version, sent to business entities warning that the IRS could seize business-owned assets if the debt is not resolved. Both carry the same urgency and require prompt action.