The IRS Notice CP504B is sent to businesses with outstanding tax balances who haven’t responded to previous notices. This notice warns that the IRS intends to levy your business assets and accounts receivable if no action is taken.

The CP504B notice is a severe matter that requires immediate attention. It represents one of the final warnings before the IRS takes direct enforcement action against your business assets and can significantly impact your operations.

Look for any issues with your CP504B notice:

• Do you agree with the amount the IRS claims you owe?
  • If you disagree, you have the right to dispute the IRS.
• Do you have the means to pay the full amount?
  • If paying in full would create a financial hardship, you may qualify to settle the debt for less than the full amount. You may also qualify for a payment plan.
• Is this your first time receiving a tax penalty?
  • You may qualify to eliminate some of those penalties through the first-time penalty abatement program.

If you agree with the balance due and have the means to pay it, paying as soon as possible will help you avoid additional interest and penalty charges.

CP504B is a notice of intent to seize (levy) your property or rights to property and is sent to business taxpayers with unpaid tax liabilities. This notice indicates that previous attempts to collect the tax debt have been unsuccessful, and the IRS is now preparing to take more serious collection actions. It specifically warns of the IRS’s intent to seize your accounts receivable and other income, bank accounts, and business assets. 

This IRS notice includes:

• Tax Year
• Amount Due
• Payment Deadline
• Intent to Seize Your Property or Rights to Property
• Potential Denial or Revocation of United States Passport
• Payment Options
• Failure-To-Pay Penalty and Interest
• IRS Contact Information

The IRS Notice CP504 and CP504B are both final reminders demanding payment of back taxes, but they differ in their scope and implications. The CP504 is a notice of intent to levy that warns about the potential seizure of state tax refunds and other property or assets, typically issued for individual tax debts. 

In contrast, the CP504B is specifically aimed at business taxpayers and generally involves more immediate and severe consequences, including the potential seizure of business assets, accounts receivable, and business property.

When receiving a notice CP504B, postponing action on your business tax obligations is no longer an option and could have severe consequences. A full payment of the balance due will immediately halt any impending enforcement actions and protect your business assets from levy. 

If a full payment isn’t financially feasible, you may explore alternative resolution options such as an Installment Agreement. It’s crucial to pursue an arrangement promptly by contacting the IRS or consulting with a tax professional.

You can instantly pay your IRS CP504B Notice online or by mailing a check or money order.

If you receive a CP504B Notice and you believe the balance due is incorrect, you have the right to dispute it by conducting a thorough review of your business tax records and contacting the IRS to address any discrepancies. However, time is of the essence – failure to respond promptly could result in immediate enforcement actions, including the seizure of business assets, interception of accounts receivable, or levies against your business bank accounts. 

It is advisable to maintain detailed documentation of any correspondence and consider consulting with a tax professional to ensure your business’s interests are properly represented during the dispute process.