A CP504B is the business version of the IRS notice of intent to levy: a company owes tax and the IRS warns it may seize business assets — bank accounts, receivables, and state tax refunds — if the balance isn’t paid. Pay it or set up a payment plan promptly, and know that a later notice must precede a levy on some assets.
A CP504B is the business counterpart to the individual CP504: it tells a business that owes federal tax that the IRS intends to levy. The notice is issued under Internal Revenue Code section 6331(d), which it cites directly, and it warns that the IRS may seize business property — wages the business pays, real estate commissions, accounts receivable, bank accounts, and business state tax refunds — to satisfy the debt. It reads as a hard deadline, and it is: the IRS asks for payment within 30 days. Two things are worth understanding. First, a CP504B is a real escalation — earlier balance-due notices went unpaid. Second, for a levy on many assets the IRS must still send a final notice with Collection Due Process (appeal) rights before it can act, so a CP504B is a serious warning but usually not the last word. The move is to resolve the balance now: pay in full, set up a business installment agreement, or contest the amount if it’s wrong — and review your appeal rights in Publication 1660.
CP504 is the individual notice of intent to levy; CP504B is the business version. Both are issued under IRC § 6331(d) after a balance goes unpaid, but CP504B addresses business assets and business state tax refunds.
Not from this notice alone for every asset. A CP504B can allow the IRS to levy certain state tax refunds, but for most property the IRS must first send a final notice of intent to levy that includes your Collection Due Process appeal rights.
Set up a payment plan or contact the IRS to discuss options before the levy escalates. Letting a CP504B lapse without response is what moves the account toward a final levy notice.
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