IRS CP 90: Final Notice of Intent to Levy – Meanings & Actions Needed
CP90 is a formal notice that the IRS has the right to seize your assets if you do not pay. You should not ignore this letter. If you don’t take action within 30 days, your income, retirement benefits, property, bank accounts, and other assets may be at risk.
What If You Disagree With Your CP90?
If you disagree with the information on the CP90, you have the right to appeal. To start that process, complete Form 12153, Request for a Collection Due Process Hearing. Mail the form to the address on your CP90.
When you submit an appeal, your case moves from the IRS’s collection department to the appeals department. Typically, that means you get an individual assigned to your case. That can be a lot easier than calling the IRS and dealing with different reps every time.
Appealing also buys you three to six months of extra time. Note that interest continues to build during the appeals process.
What If Someone Is Helping You With Your Taxes?
If you have an accountant, you can submit Form 2848, Power of Attorney, and Declaration of Representation. That gives the IRS permission to talk with your tax professional about your case. It also diverts the collection activity through that person so you don’t have to deal with calls or letters.
What Happens If You Ignore a CP90 Notice?
Ignoring a CP90 notice can have serious consequences. Thirty days after issuing this notice, the IRS has the right to levy assets which may include seizing vehicles, property, bank funds, and wage income. Generally, the only exempt assets are essential clothing, a moderate-value vehicle, and income that you need to pay court-ordered child support.
The agency can even levy 15% of your Social Security payments. However, if the IRS plans to levy Social Security payments, it may send you a CP91 instead.
Stopping a Levy
If the IRS has already started to levy your assets there are a variety of ways that the levy can be stopped even after it has started. Every person has a unique situation and there are methods to stop a levy depending upon your situation. For more details on stopping a tax levy after it has already started, please refer to this guide on stopping or releasing a tax levy.
How to Get Help With Your CP90?
Receiving a CP90 can be scary, and if you weren’t worried about the previous notifications you received, you should be worried about this one. Luckily, there are accountants and tax professionals who can help you.
Tax professionals can help you understand notices, stop asset seizure, set up payment plans, and more. Start your below to find a tax professional that has IRS experience.