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The IRS Notice CP90 is not something to ignore. While many IRS notices have a silver lining, or at the least could be a mistake, the CP90 is one that, unfortunately, brings bad news. The IRS uses the CP90 to warn the taxpayer they intend to take your assets, property, or seize your wages. If you happen to be a federal contractor, the IRS can go as far as to act without providing you a hearing. If you do nothing to rectify this problem, the IRS will levy certain assets that amount or are less than your tax debt.
This not a notice to ignore, nor is it one to take lightly. You must act as soon as possible to ensure that none of your assets, wages, or bank accounts are levied. Read on to learn more information on your CP90 notice.
What Is a Notice of Levy?
If you are confused as to the point of this notice, it is the IRS stating that within 30 days, if you do not respond, they are going to seize assets, wages, or funds to cover your tax debt. You now have 30 days to request a Collection Due Process hearing. In an oversimplification: the IRS states they are going to act upon your tax debt, you must request a hearing and at this hearing, if you do not agree with their claims, you can dispute the validity of the debt.
You are legally allowed representation at this hearing and professionals recommend that you seek tax debt relief. IRS appeals officers are intelligent, diligent, and work with pointed agendas. It is often difficult to refute the IRS notice CP90 without others that can operate in the same degree.
Can You Pay The IRS CP90 Notice Online?
The best-case scenario, if the IRS did not make a mistake, is that you have the funds to make the appropriate payment necessary. This will cover your balance, remove your tax debt, and further allow you to organize your finances. Once this payment has processed, the levy will be removed and the IRS will no longer take action on seizing your assets. You can pay online through the IRS’s website.
What If I Can’t Pay?
It is entirely understandable if you cannot pay the balance owed. By nature of the IRS CP90, it is reasonable to assume not having the funds initially was the vehicle driving forth this problem. However, do not fret. There are alternative options.
For one, the IRS allows you to submit a request for an IRS debt settlement plan. If approved, this will allow you to pay your debt incrementally, without having to pay the entire outstanding amount in a single payment. An IRS offer in compromise is also an option, and this is typically one lump sum equal to less than what is owed but rectifies the balance.
If you are going to have a tax professional communicate with the IRS on your behalf, then you will have to fill out Form 2848 and mail it in. This is both a power of attorney and a declaration of representative. When discussing payment plans, an offer in compromise, or the likes of, we strongly recommend you employ an IRS tax advocate, seeing as the will know the best way to navigate these troubling waters.
How Do I Contact the IRS About a Levy?
There are a few ways to contact the IRS about a levy. First, you can call them on the number provided in the top right of the IRS CP90 notice. Second, you can mail them correspondence letters. If you choose the latter, we strongly recommend that you send your documents via certified mail. In the case that they do not receive it, especially being that the IRS notice CP90 has a 30-day deadline, it is paramount that you have proof you tried to make contact.
A 90% Seizure
Unfortunately, if you do not respond in the appropriate fashion, as detailed by the IRS, then they will seize your assets or take up to 90% of your wages. Part of this response often relates to Form 433A and Form 433F, as these disclose your income and assets, which they will want to further dissect. If this is your reality, then know whichever way you decide to respond, from the first contact you must have a strategy in place.
If you provide them with information you should not have disclosed, they can use it against you, take aggressive action, and provide a stronger argument in your Collection Due Process hearing (if you so happen to request one). Our point: do not simply respond to the IRS without first devising a strategy. Without the proper infrastructure in place, you could easily render yourself a fish out of water when trying to appeal the CP90.
Whatever You Decide, Don’t Ignore
As with any IRS notice, the route to fixing the problem is never by ignoring it. With some notices, this phenomenon does not apply as vigorously. With the IRS CP90, it is law. Being that they have given you a set deadline and expressed their intention of levying your assets, you cannot allow the notice to sit without answer.
While it may be intimidating, unsettling, and downright scary, it is important that you remember the IRS has programs in place for people that cannot afford to pay their tax debts. They will work with taxpayers to ensure each party receives the best possible outcome. However, being that these notices tend to be a bit more serious, we do recommend you seek the help of a tax professional.