CP504B: the IRS intends to levy your business
- What it is
- Notice of intent to levy (business)
- Type
- Balance and collection
- Your deadline
- Pay or contact the IRS "as soon as possible but no later than 30 days from the date of the notice."
- In most situations the IRS must send another notice offering a Collection Due Process hearing before it levies. The exceptions named on irs.gov are a Disqualified Employment Tax Levy and a Federal Contractor Levy.
- To
- You
- From
- Blaga Veleva, EA
- Re
- Business notice of intent to levy
A CP504B is the IRS notice of intent to levy, under tax code section 6331(d), sent to a business that has not paid what it owes. The IRS says to pay immediately, and to pay or contact it no later than 30 days from the date of the notice. After that, a levy or a federal tax lien can follow.
What does a CP504B mean?
It means the business balance has reached the levy stage. The IRS says it sends this notice "because we haven't received payment for the amount you owe." If the amount is not paid right away, the IRS "may seize or levy certain property or rights to property," and it may also file a Federal Tax Lien, per the IRS CP504B page. The notice also explains that a passport can be denied or revoked for certain unpaid tax debts. The individual version is the CP504.
How long do you have?
Thirty days at most. The IRS says to pay your balance or contact it "as soon as possible but no later than 30 days from the date of the notice." Count from the date printed on the notice, not the day it arrived. Pay what you can now. If the business cannot pay in full, ask for a payment plan before the 30 days end.
What can the IRS levy after a CP504B?
The IRS lists wages, real estate commissions, accounts receivable and other income, bank accounts, business assets, personal assets including a car and home, and Social Security benefits.
Timing depends on the kind of debt. If the amount is not received within 30 days, the IRS "may serve a Disqualified Employment Tax Levy or a Federal Contractor Levy." In most other situations, it first sends a notice that gives you the chance to request a Collection Due Process hearing. Publication 594 explains that a Disqualified Employment Tax Levy can be served when the business previously requested a Collection Due Process appeal on employment taxes for other periods within the past 2 years. If the balance is payroll tax, read payroll tax debt too.
What if the business already paid or has a plan?
Check before you do anything else. The IRS says payments can take time to post, and if you recently paid in full you can disregard the notice. If you have an approved installment agreement, keep paying as agreed. If you applied and it is not approved yet, the IRS says to pay as much as you can now to reduce interest.
What should you do this week?
- Write down the notice date and the date 30 days later.
- Match the balance to your records, period by period.
- If the debt is payroll tax, make current deposits on time.
- Call the number on the notice, or have an Enrolled Agent call, about an installment agreement.
- If you disagree, request a Collection Appeals Program appeal before collection action starts, following the notice's instructions.
How does an Enrolled Agent help with a CP504B?
With Form 2848 signed, Blaga Veleva, EA can contact the IRS for the business, confirm the balance by tax period, and put a payment plan or another alternative in place before levy action. She can file any missing returns, ask for penalty relief where the business qualifies, and request a CAP appeal if the numbers are wrong. See how to stop IRS collections.
Not in the decoder yet. Read it to us.
Call (281) 785-0460 Send it to us
That does not mean it is unusual. The IRS sends many different notices and letters. Read us the number and the date printed on it, and Blaga will tell you what it is and what it asks you to do.
Check the letters before the number too (CP, LT or Letter), in the top right corner. See every letter in the decoder.
Type the number from the top right corner of your letter, for example CP504 or LTR 1058. No number? Try a word like levy, lien or audit.
Which one is it?
Look at the letters printed just before the number, top right of the first page.
Still not sure? Call (281) 785-0460 and read it to us.
Which letter is it?
The number is in the top right corner of the first page, for example CP14 or LTR 1058. Type it above, tap a common one below, or see every letter the decoder covers.
- What it means
- Your deadline
- If it waits
- How an Enrolled Agent can help
Have Blaga read yours Full guide
Source: irs.gov. This is a plain-English summary, not advice on your case.
Questions people ask
Q1What is the difference between a CP504 and a CP504B?
Both are notices of intent to levy under section 6331(d). The CP504B is the version sent for a business balance, and its irs.gov page names business property such as accounts receivable and business assets, along with employment tax and federal contractor levies.
Q2Can the IRS levy my business bank account after a CP504B?
It can levy bank accounts. In most situations the IRS first sends a notice offering a Collection Due Process hearing. A Disqualified Employment Tax Levy or a Federal Contractor Levy can be served after the 30 days without that step.
Q3Can I appeal a CP504B?
You may request an appeal under the Collection Appeals Program before collection action takes place, by following the instructions on the notice. Blaga Veleva, EA can file it for the business under Form 2848.
Q4Should a business pay a CP504B right away?
Pay what you can right away and contact the IRS within 30 days of the notice date. If the business cannot pay in full, ask for a payment plan before that date.