IRS Notice CP504B: notice of intent to levy for a business

According to the IRS, CP504B tells a business that the IRS hasn't received payment, that it may seize or levy property or rights to property if the amount isn't paid, and that it may file a Federal Tax Lien if it hasn't already. Property the IRS lists includes wages, real estate commissions, accounts receivable and other income, bank accounts, business assets and personal assets. The notice also references passport certification under the FAST Act for certain seriously delinquent debts.

The IRS says to pay or contact it as soon as possible and no later than 30 days from the notice date. If it doesn't hear from you, it may serve a disqualified employment tax levy or a federal contractor levy. In most other situations, the IRS sends a separate final notice with Collection Due Process rights before levying — giving 30 days to request a hearing on Form 12153.

A disqualified employment tax levy applies when the business requested a CDP hearing for employment taxes in the prior two years; the hearing then comes after the levy. That's why repeat payroll balances can be levied faster — see payroll tax levies.

• Pay in full through your business tax account, EFTPS or Direct Pay.
• Apply for a payment plan. Businesses owing $25,000 or less with trust fund taxes, or $50,000 or less without, may qualify for a Simple Payment Plan if filings are current.
• An Offer in Compromise, or a temporary collection delay for hardship.
• Request an appeal under the Collection Appeals Program before collection action, following the notice instructions.

If you've already set up an installment agreement, keep paying as agreed.

Confirm a CP504B is genuine before acting on it. Sign in to your IRS business tax account or request a business account transcript and check that the period and amount match. If you call, use the number printed on the notice only after confirming it matches the one IRS.gov lists for that notice. The IRS doesn't demand payment by gift card, cryptocurrency or wire transfer to an individual.

If the balance is payroll tax, remember that the trust fund portion can become personal through the Trust Fund Recovery Penalty. Designate voluntary payments to trust fund taxes, keep current deposits going, and resolve the balance before levies start. Individual taxpayers receive the related CP504 instead. Take the free business assessment to see options for your stage.