CP90 and CP297 Notices: Final Notice of Intent to Levy

CP90 and CP297 are the IRS's final notices of intent to levy. The IRS describes them as notifying you that it intends to levy certain assets for unpaid taxes and that you have a right to a Collection Due Process hearing. They are the last major warning before wages, bank accounts or other property can be seized, and they start a short, firm window to ask for a hearing.

What the notices say

The CP90 notifies you of unpaid taxes and that the IRS intends to levy to collect. The CP297 is described as notifying you that the IRS has not received full payment despite several notices about your unpaid federal taxes. Both state that you can request a CDP hearing to appeal the proposed seizure and raise other disagreements. The IRS also warns that seriously delinquent tax debt can lead to passport denial or non-renewal.

Two sister notices exist. The CP90C and CP297A say the IRS has already levied your assets, and they inform you of your right to a hearing after the fact. The CP90C page notes that the IRS can levy federal contractors without giving prior hearing rights under IRC 6330(f). The CP297A page explains that you are not eligible for a pre-levy hearing when you already requested a hearing within the last two years for an earlier period. If you hold one of these, the same urgency applies: read the notice and file Form 12153 on time.

The CDP hearing

A Collection Due Process hearing is held by the IRS Independent Office of Appeals, separate from the collection office. You request it on Form 12153, Request for a Collection Due Process or Equivalent Hearing, and send it to the address on the notice. You may include documents, such as through the IRS document upload tool using the access code on the notice. See collection due process hearing.

At the hearing you can:

• Propose a collection alternative, such as an installment agreement or offer in compromise. The IRS says Forms 433-A (individuals) or 433-B (businesses) with supporting documents are typical.
• Argue that the levy is inappropriate, raise spousal defenses, or raise economic hardship.
• Challenge the amount of the tax, but only if you did not receive a notice of deficiency or otherwise have an earlier chance to dispute it.

Publication 1660 explains that a timely CDP request generally stops levy for the periods involved during the hearing, and suspends the 10-year collection period. After a determination you may petition the U.S. Tax Court within the period stated in the determination letter. Raise every issue and submit all evidence at the hearing, because the court may limit what it considers.

If you miss the 30 days

You may still ask for an equivalent hearing within one year of the date of the levy notice. An equivalent hearing does not suspend levy, does not suspend the collection statute, and you cannot go to court over the result.

Other options

• Pay in full, online or by mail.
• Request an installment agreement. Many individuals can apply online. See installment agreements.
• Offer in compromise or hardship status in suitable cases. See offer in compromise and currently not collectible status.

Interest and penalties

Interest and the failure-to-pay penalty continue to accrue, and the penalty rate increases after a notice of intent to levy, according to IRS guidance. See failure-to-pay penalty and wage garnishment and bank levies.

Common mistakes

• Waiting for a "last chance" call from the IRS instead of filing Form 12153 in time.
• Requesting a hearing by phone. The request must be in writing and timely, at the address on the notice.
• Arguing only that the tax is unfair. Appeals considers the law, not moral or political objections.
• Proposing an alternative without financial information.

When to involve a CPA

Call a CPA immediately. We can help decide whether to request a hearing, prepare Form 12153, assemble financial statements and propose an alternative. With a signed Form 2848, we can also negotiate with the collection function. If the dispute is about the underlying liability or heads to Tax Court, we will tell you honestly when an attorney is better placed.

How we can help

We can calendar the deadline, file the request, and build the case for an installment agreement or other alternative. See our IRS representation services or contact us.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.