CP504B: notice of intent to levy for a business balance

What a CP504B means

A CP504B is a notice of intent to levy, sent under section 6331(d) of the Code because the business's balance hasn't been paid. If it isn't paid, the IRS says it may levy property or rights to property, and it may file a federal tax lien. [1]source 1

For some businesses it is the last step before a levy. The IRS says that if it doesn't receive the amount due in time, it may serve a disqualified employment tax levy or a federal contractor levy; in most other cases it sends a further notice with Collection Due Process hearing rights first. [1]source 1

The notice also explains that the State Department may deny or revoke a passport for seriously delinquent tax debt. [1]source 1

Why people get one

• An earlier balance on a business tax account is still unpaid. [1]source 1
• Payroll tax balances move fastest, because the employment-tax levy doesn't wait for a hearing notice.

First steps

1. Check the balance in your business tax account at irs.gov, typed in yourself; recent payments can take time to post. [1]source 1
2. Pay in full if you can, or apply for a payment plan. [1]source 1
3. Look at the other options the IRS lists: an installment agreement, an offer in compromise, or a temporary collection delay for hardship. [1]source 1
4. If you disagree, ask for an appeal under the Collection Appeals Program by following the instructions on the notice, before collection action starts. [1]source 1
5. Bring in a representative now if payroll taxes are involved; the officers can be personally charged too.

What not to do

• Don't wait for another notice. For employment tax balances and federal contractors the next step can be a levy. [1]source 1
• Don't keep missing current payroll deposits while you sort out the old balance; new balances make every option harder.
• Don't pay through a link or phone number in an unexpected email or text. Use irs.gov, typed in yourself.

Related notices

• Related CP504 The same step for an individual's balance.
• Can come next CP297C A notice that a federal contractor levy has been made.
• Can come next LT11 The final notice with hearing rights, in most cases.
• Related CP15B A personal penalty for unpaid withheld payroll taxes.

Keep reading

• Section 6331 of the Code: levy
• Section 6330 of the Code: hearing before a levy
• Installment agreement
• Form 2848 (power of attorney)

Questions