The IRS form CP504B is rather unusual, we don’t see it that often. It’s actually a notice of the IRS’s intent to levy your property and your rights to your property.

The word “levy” actually means “to seize” and it’s important to note that when the IRS issues you this notice, well at least as to regards this particular tax liability, they don’t have the legal right to seize or levy anything from you until they’ve issued you a formal Letter 1058 and waited the 30 days for you to appeal that Letter 1058.

This letter is a bit of a paper tiger. It doesn’t really mean much, other than it’s very scary. I’ve received these in the past as a tax payer, and I think that they are very scary, at least when you’re in that position.

It has another thing that it does. It actually maxes out your penalty rate at an extra 0.25 percent per month until those penalties are actually exhausted.

Penalties and interest are accrued daily, so you’re paying penalties and interest on penalties and interest that were accrued yesterday, so it’s a bit of a racket. Penalties and interest get out of control with IRS tax debt, so it’s important that you go ahead and take care of those.


The CP504B is a scary letter. It’s intended to get you to pay your tax bill as soon as possible, but it does not grant the right to the IRS of any special right to levy or seize your property.

If you have questions about this, or just want to know more about IRS tax problem resolution, I invite you to visit our website at