The CP504B is a Notice of Intent to Levy issued to a business for an unpaid tax balance — often payroll (employment) taxes, which the IRS pursues especially aggressively. Like the individual CP504, it allows the IRS to seize a state tax refund and warns that levies on business bank accounts, receivables, and other assets will follow.
What this notice means
A CP504B confirms the IRS is beginning enforced collection against your business. It allows the IRS to levy your state tax refund now and signals that a Final Notice of Intent to Levy is the next step. Because unpaid payroll taxes include money withheld from employees, the IRS treats these balances as a high priority and may also pursue the Trust Fund Recovery Penalty against responsible individuals personally.
Why you received it
- Your business has an unpaid federal tax balance — frequently Form 941 payroll taxes.
- Earlier business balance-due notices went unanswered.
- No payment arrangement or resolution is in place for the business account.
Deadlines and what happens if you ignore it
| Risk to the business | Consequence |
|---|---|
| State refund | Seized and applied to the federal balance |
| Final notice | Final Notice of Intent to Levy follows |
| Bank accounts | Business accounts levied |
| Receivables | Accounts receivable can be levied |
| Personal exposure | Trust Fund Recovery Penalty against owners/officers |
Payroll tax debt is personal
With unpaid employment taxes, the IRS can assess the Trust Fund Recovery Penalty against owners, officers, and other responsible persons — making the debt personal. Fast action protects both the business and you. See IRS Topic 201.
How to respond to a CP504B
- Act immediately — business levies can freeze the cash flow you need to operate.
- Verify the balance and confirm which tax periods are involved.
- **Negotiate a business installment agreement** or other resolution before the final notice.
- Explore settlement through an Offer in Compromise where the business qualifies.
- Address the Trust Fund Recovery Penalty exposure with professional guidance.
How USCTS helps
Business tax problems carry higher stakes and more moving parts than individual debts. We represent the business before the IRS, negotiate to keep operations running, and work to prevent or limit the Trust Fund Recovery Penalty against owners. We also resolve any related back taxes, file missing returns, and pursue release of any lien or levy already in place.
Protect your business from a CP504B levy.
Get a no-obligation review of your tax situation and a clear plan for resolving it.
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