IRS Notices Explained: What to Do When You Receive a CP501 or CP504
August 22, 2025

The IRS Collection Process

If you live in Peoria or Las Vegas and receive an IRS notice, it’s critical to know what it means. The CP501 and CP504 are part of a sequence of letters that escalate until the IRS takes action.

CP501: First Contact

This is the IRS’s initial reminder of your balance due. It explains what you owe and how to pay.

CP504: The Final Warning

This is a Notice of Intent to Levy. It allows the IRS to seize your state refund and signals they may levy wages or accounts next.

Why Ignoring Is Dangerous

  • Liens on your property.

  • Garnishment of wages.

  • Bank account levies.

Immediate Steps to Take

  1. Read carefully and note deadlines.

  2. Don’t ignore the notice.

  3. Explore payment solutions like installment plans or Offers in Compromise.

  4. Get professional help before deadlines pass.

Why It Matters Locally

Families in Peoria and Las Vegas already face rising costs. A levy can wipe out paychecks or savings overnight.

Total IRS Relief helps taxpayers in Illinois and Nevada respond to IRS notices and avoid levies. Call today for a free consultation.