Form 2290 Heavy Vehicle Tax with CP504B Intent to Levy Notice - Urgent Help Needed

This is definitely stressful, but you can resolve it! The Form 2290 is the Heavy Highway Vehicle Use Tax Return and is considered a business tax, not personal. The CP504B is a serious notice that indicates the IRS intends to levy (seize) assets to collect unpaid taxes. First, there's a disconnect between your payment and the IRS records. Even though you paid in September, their systems might not have processed or properly applied the payment yet. This happens more often than you'd think. For immediate payment, go to the IRS Direct Pay website (https://www.irs.gov/payments/direct-pay) and select "Business Tax Payment" then "Installment Agreement" as the reason for payment. Enter the tax period as 2023 and use the notice number on your CP504B. This should route the payment correctly. More importantly, you need to prove you already paid. Gather documentation of your September payment (check copy, bank statement, receipt) and fax it to the number listed on the CP504B notice along with a brief explanation and your brother's EIN.

I was caught in almost the exact same situation last year with my trucking business! After hours of IRS hold music that I'll never forget, I found taxr.ai (https://taxr.ai) which totally saved me. Instead of trying to figure out the confusing IRS options, I uploaded my CP504B notice and Form 2290 to their system, and their AI analyzed everything and gave me precise instructions on what to do. It identified that I needed to make an electronic federal tax payment through EFTPS specifically for excise taxes (which is what the 2290 is), not through the regular payment portal. They also created a custom response letter I could mail back explaining the situation and referencing my previous payment. Honestly made the whole process way clearer than the generic advice I was finding online.

I need to eat my words about taxr.ai from my skeptical comment above. After my dad got hit with a similar CP504B for his trucking business, I was desperate enough to try it. The system immediately identified that his payment had actually been applied to the wrong tax year (2022 instead of 2023) which is why the CP504B notice was generated. It created a detailed letter explaining the misapplication of funds with all the right IRS jargon and reference numbers. We faxed the letter they generated along with proof of payment, and within 2 weeks got confirmation that the issue was resolved. The tool actually knew exactly which IRS department handled Form 2290 misapplications and included that in the letter. Definitely saved us from the levy and probably weeks of phone tag with the IRS.

Since you're having trouble reaching the IRS on your own, I'd strongly recommend Claimyr (https://claimyr.com). I was in a similar situation with a CP504B notice for my Fleet Tax Services business and was going insane trying to reach someone at the IRS. Claimyr got me connected to an actual IRS agent in about 20 minutes instead of the 3+ hours I spent getting nowhere on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent was able to look up the payment you already sent and make sure it was properly applied to the right account and tax period. In my case, they found the payment had been received but was sitting in suspense because it didn't have the right reference information. The agent transferred it to the correct account while I was on the phone and sent me confirmation. Definitely worth it to skip the hold time and get this resolved before any levy actions start.

I have to apologize for my skeptical comment about Claimyr above. After continuing to fail at reaching the IRS for two days straight regarding my own Heavy Vehicle Use Tax issue, I gave in and tried it. I was shocked when my phone rang 37 minutes later with an actual IRS agent on the line. I explained my Form 2290 situation, and they were able to find that my payment had been received but was applied to the wrong tax period. The agent corrected it while I was on the call and sent me an email confirmation. The agent also explained that CP504B notices for Form 2290 are generated automatically and there's often a processing delay between when payments are received and when they're applied, which is why I got the scary levy notice even though I'd paid. Definitely worth it to resolve this quickly rather than stressing for weeks wondering if the IRS is about to freeze my accounts.

One thing nobody has mentioned is that you should make sure to get your brother to fill out Form 8821 (Tax Information Authorization) or Form 2848 (Power of Attorney) so you can legally handle this for him. Without that, the IRS technically shouldn't discuss his tax matters with you at all. For a quick fix, your brother can fax a signed statement authorizing you to discuss this specific notice, including both your names, his SSN or EIN, the tax form (2290), and tax period (2023). This temporary authorization might be enough to at least get information about the account.

Just want to add - make sure to request a "penalty abatement" when you finally reach the IRS! If this is your brother's first time missing a payment deadline for the 2290, the IRS has a "First Time Penalty Abatement" policy that can remove those extra charges. Sounds like the $42 might include penalties and interest that could potentially be removed.

I went through almost the exact same nightmare with my delivery business last year! The key thing that saved me was understanding that CP504B notices are often generated automatically even after you've paid, especially with Form 2290 where there can be significant processing delays. Here's what worked for me: Don't try to make another payment until you confirm whether your September payment was actually processed. Call the Practitioner Priority Service line at 866-860-4259 early in the morning (around 7 AM) - this line typically has shorter wait times than the main taxpayer assistance line. When you do get through, ask them to do a "payment tracer" on your September payment. They can tell you exactly where that money went and whether it was applied correctly. In my case, the payment had been received but was sitting in a suspense account because the reference information wasn't complete. Also, definitely get that authorization form from your brother ASAP. The IRS won't discuss anything without proper authorization, and you're wasting time on calls where they can't help you without it. The CP504B is scary but you typically have at least 30 days from the notice date before any actual levy action, so you have time to sort this out properly rather than panic-paying.