Addressing IRS CP90 or CP297 Notices: Final Notice Before Levy on Assets and Rights to Hearing

The IRS CP90 or CP297 notices are critical alerts that inform taxpayers of the IRS’s intention to levy assets due to unpaid federal taxes, which may include liabilities such as the Employer Shared Responsibility Payment (ESRP) under the Affordable Care Act (ACA). These notices also outline the taxpayer’s rights to a hearing before the levy is enforced.

What are CP90 and CP297 Notices?

These notices serve as the final warning before the IRS takes action to seize assets to cover unpaid taxes. They include important details such as:

• The amount of tax owed.
• The type of assets the IRS plans to levy, which can include bank accounts, wages, and other property.
• Instructions on how to request a Collection Due Process (CDP) hearing.

Responding to CP90 or CP297 Notices

If you receive a CP90 or CP297 notice, it’s crucial to act quickly:

• Review the notice to ensure that all the details are correct. Verify the amount due and the tax periods in question.
• If you can resolve the debt, make payment arrangements immediately to avoid the levy.
• If you believe the notice is in error or if you cannot pay the full amount, you have the right to request a CDP hearing. This must be done within 30 days of the date of the notice.
• Consult with a tax advisor to explore all possible options, including payment plans and offers in compromise.

Preventing Future CP90 or CP297 Notices

To avoid receiving future CP90 or CP297 notices:

• Ensure timely and accurate filing of all tax and information returns, including those related to the ACA.
• Stay informed about your tax obligations and any updates to tax laws that may affect your business.
• Consider setting up a system or working with a professional to manage your tax affairs effectively, ensuring all liabilities are settled promptly.

Additional Resources

For more detailed information on how to handle IRS levies and your rights as a taxpayer, visit the IRS Collection Process page. This resource provides comprehensive guidelines on what to expect when facing collection actions and how to address them.