The IRS sends a CP90 notice when you have unpaid taxes and they intend to levy your assets to cover some or all of your tax debt. IRS notice CP90 is a final balance due notice, typically sent after the IRS has sent, and failed to get a response on, one or more earlier notices (CP14, CP501, CP503, and CP504).
A CP90 notice can be a frightening IRS letter to receive — who wouldn’t be intimidated by the thought of the IRS coming in and seizing property that is yours? But at the time you receive the CP90 notice, you still have a chance to settle your tax debt with the IRS and avoid a levy or federal tax lien.
The key is to act as quickly as possible and not ignore the IRS notice CP90 thinking the problem will go away (it won’t). A tax professional can help you figure out your tax relief options for dealing with IRS CP90.
Why Did I Receive a CP90 Notice From the IRS?
You received a CP90 notice from the IRS because, according to their records, you have unpaid taxes and have failed to respond to one or more previously sent IRS tax balance due notices alerting you of the tax debt.
IRS notice CP90, also known as a Final Notice of Intent to Levy, informs you that if you do not resolve your tax debt, the IRS will levy your assets.
How Much Time Do I Have to Respond to a CP90 Notice?
Your IRS CP90 notice will contain a due date. This date is typically 30 days from the date of the CP90 notice. It is critical to verify the CP90 due date and make sure you respond by that date or earlier, as the IRS can file a federal tax lien or issue a levy as soon as the day immediately following the due date.
Even if you cannot pay what you owe the IRS, you should contact the IRS and either file a dispute (if you believe the CP90 notice was sent in error), submit an offer (OIC) to reduce your tax liability, or request an IRS payment plan.
The worst option is to ignore the CP90 notice, as this ensures the IRS will levy your assets and your tax balance due increases with additional penalties and interest.
What Assets Will the IRS Levy If I Don’t Pay the CP90 Notice Balance?
The IRS can levy any assets that are not specifically protected from tax levies, which usually leaves them a lot of options, including your property, paychecks, retirement funds, bank accounts, and state income tax refunds.
What Should I Do If I Can’t Pay the Amount I Owe the IRS In the CP90 Notice?
If you cannot pay the full amount you owe the IRS printed on your CP90 notice, you can seek Fresh Start Program tax relief. Common IRS tax relief programs are an Offer in Compromise (OIC) or payment plan/installment agreement. An OIC, in which the IRS settles your tax debt for a lower amount, requires proof of severe financial hardship.
The IRS also allows you to setup a monthly payment plan in which you make smaller installment payments until you pay off your tax debt. The amount of these payments is based on your monthly income along with your other debts and obligations. The IRS is usually willing to set it at a level that does not cause unnecessary financial strain.
How Do I Request a Collection Due Process Hearing if I Disagree with the CP90 Notice?
If you disagree with the CP90 notice, you need to file Form 12153 with the IRS to request a Collection Due Process (CDP) hearing. It is critical that you file this form before the due date on your CP90 notice.
You should also call the number at the top right corner of your CP90 to connect with an IRS representative and let them know you are disputing the CP90 notice and have sent Form 12153 to request a CDP hearing.
How Much Time Do I Have to Appeal a CP90 Notice?
You must appeal the CP90 notice, pay the tax balance due, or contact the IRS to make other arrangements by the due date on your CP90 notice. This date is typically 30 days from when the CP90 notice was sent.
How Can Wiztax Help?
The key is to get started. Ignoring these notices makes everything more complicated. Call us today at (866) 568-4593 to learn more about how we can help, or start here to take our free online evaluation. Regardless, we promise to save you thousands in fees.
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