- What it means
- The IRS levied your state income tax refund and applied it to your federal balance. You have hearing rights.
- Respond within
- 30 days from the date on the notice
- What to send
- Payment of any remaining balance, a payment plan, or Form 12153 within 30 days.
- When to get help
- If the balance remains large, the next levy reaches wages or bank accounts; act inside the 30 days.
What the letter says
After the CP504 warning, the IRS took your state refund. This notice tells you it happened, how much was applied, and that you can request a Collection Due Process hearing within 30 days.
What to do
If a balance remains, set up a plan or pay. If you dispute the underlying balance, file Form 12153; the hearing covers the levy and collection alternatives.
What to gather
- The notice
- Your state return showing the refund amount
- Balance records
- Form 12153 if requesting a hearing
Write back
The Payment plan request cover letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.