IRS Notice of Intent to Levy – CP 90 and CP 297

So you received a Notice of Intent to Levy. What does this mean to you?

The IRS sends either a CP 90 or a CP 297 to inform the recipient that the IRS (or state, if it is a coming from a state taxing authority) intends to levy assets. The recipient of a Notice of Intent to Levy has had a balance due on their account, and a notice has been sent to the Last Known Address of the taxpayer.

The government can even levy property that is yours but is held by someone else. These include:

  • wages
  • retirement accounts
  • bank accounts
  • rental income
  • accounts receivable

What a CP 90 looks like:

Final Notice

Notice Of Intent To Levy And Notice Of Your Right To A Hearing

Please Respond Immediately

We previously asked you to pay the federal tax shown on the next page, but we haven’t received your payment. This letter is your notice of our intent to levy under Internal Revenue Code (IRC) Section 6331 and your right to appeal under IRC Section 6330.

We may also file a Notice of Federal Tax Lien at any time to protect the government’s interest. A lien is a public notice to your creditors that the government has a right to your current assets, including any assets you acquire after we file the lien.

If you don’t pay the amount you owe, make alternative arrangements to pay, or request an appeals hearing within 30 days from the date of this letter, we may take your property, or rights to property. Property includes real estate, automobiles, business assets, bank accounts, wages, commissions, social security benefits, and other income. We’ve enclosed Publication 594, which has more information about our collection process; Publication 1660, which explains your appeal rights; and Form 12153, which you can use to request a Collection Due Process hearing with our Appeals Office.

To prevent collection action, please send your full payment today.

  • Make your check or money order payable to United States Treasury.
  • Write your Social Security Number on your payment.
  • Send your payment and the attached payment stub to us in the enclosed envelope. The amount you owe is shown on the next page.

If you have recently paid this tax or you can’t pay it, call us immediately at the above telephone number and let us know.

The assessed balance may include tax, penalties, and interest you still owe. It also includes any credits and payments we’ve received since we sent our last notice to you. Penalty and interest charges continue to accrue until you pay the total amount in full. We detail these charges, known as Statutory Additions, on the following pages.

Enclosures:

Copy of this notice

Pub 594, IRS Collection Process

Pub 1660, Collection Appeal Rights

Form 12153, Request for a Collection Due Process Hearing

Envelope

If you do not pay your taxes (or make arrangements to settle your debt):

  • The government can seize and sell property that you hold (such as your car, boat, or house), or
  • The government can levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, rental income, accounts receivables, the cash value of your life insurance, or commissions).

The government usually levies only when the following three conditions have occurred:

If a levy is placed on your bank account, the levy attaches the funds that have cleared and are available for withdrawal. The bank must wait until 21 days after a levy is received before sending the money. The holding period allows you time to resolve any dispute about account ownership, or get professional advice on your situation.

After 21 days, the bank must send the money, plus, if applicable, any interest earned on that amount. To cease enforced collection, the taxpayer must work with the taxing authority by presenting a reasonable resolution and working toward fixing the tax problems.