CP504B says the IRS intends to levy property or rights to property because a business tax balance remains unpaid. It also warns that a seriously delinquent tax debt may be certified to the State Department, which controls passport denial, revocation, or limitation.
Two Threats in One Notice
The notice demands payment or contact within the period printed on it. After that period, the IRS says it may use certain employment-tax or federal-contractor levy procedures. In many other situations, the IRS must provide a separate Collection Due Process notice before levy. Do not assume that distinction makes CP504B harmless: identify the tax type and enforcement rules that apply to your account.
Passport certification is a separate process and the statutory threshold changes with inflation. Use current IRS guidance rather than relying on an old dollar figure.
How to Avoid Passport Certification
Depending on the facts, payment, an approved installment agreement, an accepted offer in compromise, a qualifying hardship status, bankruptcy, or a pending hearing may affect certification or collection. Eligibility and timing matter; proposing an option is not always the same as having it approved.
If You Need to Travel
If you have imminent international travel, tell the IRS and your representative immediately. Keep documentation of the travel and any steps taken to resolve the balance. The State Department, not the IRS, makes the passport decision after certification.
If you've received a CP504B and travel is at risk, call us immediately at (813) 229-7100.