CP504 vs LT11: What’s the Difference and Which Is Worse?

If you’ve received either a CP504 or LT11, the IRS is in active collection mode. Your options shrink with every passing day. Call Global Gate Tax Relief at 1-877-800-8180 for a free, urgent consultation.

At a Glance

Detail Information
CP504 Intent to Levy — state tax refund only
LT11 Final Notice of Intent to Levy — ALL assets
Which Is Worse? LT11 is more dangerous, but CP504 is the better time to act
Key Difference LT11 triggers CDP hearing rights; CP504 does not
Your Best Move Call a tax professional before the next notice arrives
Get Help Now 1-877-800-8180 or Contact Us

The Complete CP504 vs. LT11 Comparison

Feature CP504 LT11 (also LT11/CP90)
Official Name Notice of Intent to Levy (IRC § 6331(d)) Final Notice — Notice of Intent to Levy and Notice of Your Right to a Hearing
Position in Collection Sequence 4th notice (after CP14 → CP501 → CP503) 5th and final notice before active enforcement
What Comes Before CP503 (Second Reminder) CP504 (Intent to Levy)
What Comes After LT11 / CP90 Active levy — wage garnishment, bank seizure, property seizure
IRS Levy Authority State income tax refund only ALL assets: wages, bank accounts, Social Security (up to 15%), accounts receivable, retirement funds in some cases, real and personal property
Passport Revocation Risk Yes — if liability exceeds $66,000 (2026 threshold per IRS.gov, IRC § 7345) Yes — same
Delivery Method Certified or registered mail (IRC § 6331(d)(2)) Certified mail (legally required under IRC § 6330)
CDP Hearing Right ❌ No — CDP hearing is not triggered by CP504 ✅ Yes — 30-day right to request a CDP hearing
How to Respond Call the number on the notice, or request a Collection Appeals Program (CAP) appeal Call Collection or file Form 12153
Collection Appeal (CAP) ✅ Yes — can file Form 9423 ✅ Yes — but CDP hearing is stronger
Urgency Level 🔴 High Critical
Typical Time to Respond 30 days (before LT11 is sent) 30 days (hard deadline for CDP hearing)
What Happens If You Ignore It IRS sends LT11/CP90 (final notice) IRS begins active levy — bank accounts frozen, wages garnished
Best Resolution Strategy Installment agreement, OIC, pay in full CDP hearing immediately, then negotiate resolution
Legal Authority IRC § 6331(d) — notice of intent to levy IRC § 6330 — final notice with CDP hearing rights; IRC § 6331 — levy authority
Response Form Payment or call to IRS Form 12153 (CDP hearing request)

If You Received a CP504

The CP504 means you’re at the fourth stage of the IRS collection process. You’ve already received (and presumably not responded to) the CP14, CP501, and CP503 notices. The IRS is now telling you it intends to levy your state income tax refund.

  1. What the IRS CAN Do After CP504:

    • Seize your state income tax refund
    • File or has already filed a federal tax lien against your property
    • Certify your balance to the State Department for passport revocation (if over $66,000)
    • Send the next and final notice (LT11/CP90)
  2. Why CP504 Is Actually the Better Time to Resolve

    Here’s the counterintuitive truth: while the LT11 is objectively more dangerous, the CP504 stage is when you should be most motivated to act. At this point:

    • You still have time before the final notice
    • Your resolution options are wide open
    • You can set up an installment agreement or submit an Offer in Compromise without the pressure of a 30-day CDP deadline
    • The IRS hasn’t activated full levy authority, so you’re negotiating from a position of relative strength
    • Professional fees are typically lower because the case is less urgent

    → Read our complete CP504 guide for detailed response instructions.

If You Received an LT11

The LT11 (sometimes CP90) is the most dangerous notice in the entire IRS collection sequence. It’s the final warning before the IRS unleashes its full collection authority. It arrives by certified mail — a legal requirement — because the IRS needs proof of delivery before it can levy your assets.

What the IRS CAN Do After LT11 (once 30 days pass):

  • Levy (seize) your bank accounts — your bank freezes your funds for 21 days, then sends them to the IRS
  • Garnish your wages with a continuous levy — your employer withholds most of your paycheck
  • Levy up to 15% of your Social Security benefits
  • Seize accounts receivable if you’re self-employed
  • Seize and sell personal property (vehicles, equipment, inventory)
  • In extreme cases, seize and sell real property (requires additional approvals)

Your Most Powerful Right: The CDP Hearing

The one silver lining of receiving an LT11 is that it triggers your right to a Collection Due Process (CDP) Hearing. If you file Form 12153 within 30 days of the date on the notice, IRS levy action stops for the periods covered. The IRS cannot levy, garnish, or seize anything for those periods while the CDP hearing is pending (a lien can still be filed).

At the hearing, you can propose an alternative resolution — an installment agreement, an Offer in Compromise, or Currently Not Collectible status — to an independent IRS Appeals Officer. If the Appeals Officer rules against you, you can petition the U.S. Tax Court, extending the collection freeze even further.

→ Read our complete LT11 guide for detailed response instructions. → Read our complete CDP Hearing guide for step-by-step Form 12153 instructions.

If You Received BOTH CP504 and LT11

If you’ve received both notices, it means you progressed from the CP504 stage to the LT11 stage without resolving the issue. Here’s what this means:

The Timeline Between Them

The LT11 typically arrives 4–8 weeks after the CP504. During this gap, the IRS may have already: – Levied your state income tax refund (authorized by the CP504) – Filed a federal tax lien if one wasn’t already in place – Certified your balance for passport revocation (if applicable)

Your Situation Now

If you have the LT11 in hand, the CP504 is no longer the relevant notice — the LT11 supersedes it. Your focus should be entirely on the LT11 and the 30-day CDP hearing deadline.

Check the date on the LT11. If you’re within 30 days, file for a CDP hearing immediately. If you’re past 30 days, you may still qualify for an equivalent hearing (within one year) — but the IRS will not stop collection while it’s pending.

Which Is Worse? The Definitive Answer

The LT11 is objectively more dangerous than the CP504. Here’s why:

Risk Factor CP504 LT11
Can the IRS take money from your bank? No Yes (after 30 days)
Can the IRS garnish your paycheck? No Yes (after 30 days)
Can the IRS take your Social Security? No Yes — up to 15%
Is this the last notice before enforcement? No (LT11 comes next) Yes — enforcement follows
Do you have CDP hearing rights? No Yes
Is there another chance after this? Yes (LT11 is next) No — next step is active levy
Delivery Method Certified or registered mail (IRC § 6331(d)(2)) Certified mail (legally required under IRC § 6330)

The Full Collection Sequence in Context

Here’s where both notices fit in the IRS’s complete collection timeline:

Step Notice Timing Urgency Levy Power
1 Balance assessed Day 0 Low None
2 CP14 3–8 weeks Moderate None
3 CP501 +5–8 weeks Elevated Lien possible
4 CP503 +5–8 weeks High Lien likely
5 CP504 +5–8 weeks High State refund
6 LT11 / CP90 +4–8 weeks Critical Everything (after 30 days)
7 Active Levy +30 days Emergency Full enforcement

Case Study: Same Liability, Different Outcomes — CP504 vs. LT11 Resolution

Client A: Acted at CP504 Stage

Situation: $28,000 in unpaid 2022 taxes. Received CP504 in August 2024. Called Global Gate Tax Relief at 1-877-800-8180 within 1 week.

Our Approach: – Reviewed financial situation: monthly income $5,200, necessary expenses $4,600, disposable income $600 – Applied for streamlined installment agreement: $600/month for 48 months – No levy occurred. No additional enforcement actions.

Result: – Monthly payment: $600 – Total paid over time: $28,800 (original balance + interest) – Credit impact: Lien filed but manageable; credit score dipped 40 points then stabilized – Stress level: Moderate — resolved in 3 weeks – Professional fees: $1,500

Client B: Waited Until LT11 Stage

Situation: $28,000 in unpaid 2022 taxes (same amount). Ignored CP504. Received LT11 in October 2024. Called Global Gate Tax Relief on Day 25 of the 30-day CDP window — 5 days before the deadline.

Our Approach: – Emergency CDP hearing request filed on Day 27 (cutting it close) – State tax refund already seized ($2,300) from the CP504 authority – Balance now $29,400 (additional penalties and interest from 2 months of inaction) – Prepared financial documentation for CDP hearing – CDP hearing conducted 4 months later — negotiated installment agreement

Result: – Monthly payment: $620 (higher balance) – Total paid over time: $30,500+ – Credit impact: Same lien, but 2 additional months of non-compliance on record – Stress level: Extreme — emergency filing, months of uncertainty during CDP process – Professional fees: $3,500 (emergency filing + CDP hearing preparation + representation) – Lost state refund: $2,300

The difference: Client B paid approximately $4,800 more in total costs (higher balance + higher professional fees + lost state refund) and endured 5 additional months of stress — all for the exact same starting liability. The only difference was timing.

Common Questions About CP504 vs. LT11

No. While both notices mention levying your assets, they are fundamentally different in scope and severity. The CP504 is the fourth notice in the IRS collection sequence and only authorizes the IRS to levy your state income tax refund. The LT11 is the fifth and final notice, authorizing the IRS to levy virtually all your assets — bank accounts, wages, Social Security, and property — after a 30-day waiting period.

What to Do Right Now

If You Have a CP504:
1.Don’t wait for the LT11. The CP504 is your best remaining opportunity for a clean resolution.
2.Call Global Gate Tax Relief at 1-877-800-8180. We’ll review your balance, analyze your financial situation, and set up the best possible resolution — whether that’s an installment agreement, Offer in Compromise, or another option.
3.Gather your documents. Have your CP504, prior IRS notices, tax returns, and recent pay stubs ready.

If You Have an LT11:

1.Check your deadline immediately. Look at the date on the LT11 and count 30 days forward. If you’re within the window, you need to act TODAY.
2.Call Global Gate Tax Relief at 1-877-800-8180 — right now. We file emergency CDP hearing requests regularly, sometimes with just days to spare. We’ll stop the IRS in its tracks.
3.Do NOT call the IRS Collection division. Once we’re involved, all communication goes through us. Calling the IRS yourself can complicate your case.