The CP90 is an official notice that the IRS has the right to seize your assets if you do not pay. This letter is very significant and should not be ignored, nor is it one to take lightly. If you don’t take necessary actions within 30 days, your income, property, bank accounts, retirement benefits and other assets may be at jeopardy. While many IRS notices have a silver lining, the CP90 is one that, unfortunately, does not bring good news. The IRS uses the CP90 to notify the taxpayer they intend to take your assets, property, or seize your wages. If it turns out to be that you are a federal contractor, the IRS can go as far as to act without giving you a hearing. If you do nothing to resolve this problem, the IRS will levy certain assets that are worth or are less than your tax debt.

If you are confused as to the point of this notice, it is the IRS stating that you now have 30 days to request a Collection Due Process hearing. In generalization: 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 granted representation at this hearing and professionals propose that you seek tax debt relief. IRS appeals officers are smart diligent, and work with pointed agendas. It is not easy to refute the IRS notice CP90 without others that can work in the same degree.

Getting in touch with the IRS about a Levy

There are a few ways to get in touch with the IRS about a levy. First, you can call them on the number provided in the top right of the CP90 notice. Second, you can mail them correspondence letters. If you choose to mail them correspondence letters, it is strongly recommended that you send your documents through certified mail. In the situation that they do not receive it, especially being that the IRS notice CP90 has a 30-day deadline, it is vital that you have evidence you tried to make contact.

Paying your CP90 Online   

If the IRS did not make a mistake, the best-case scenario is that you have the funds to make the suitable payment necessary. This will cover up your balance, remove your tax debt, and further let you organize your finances. Once this payment has been processed, the levy will be removed and the IRS will no longer take action on seizing your assets. You can also pay online via the IRS’s website.

What If I Can’t Pay?

It is totally understandable if you cannot pay the balance owed. By nature of the CP90, it is reasonable to suppose not having the funds initially was the cause of this problem. However, do not worry There are alternative options.

The IRS allows you to submit a request for an IRS debt settlement plan. If accepted, this will allow you to pay your debt at installments, without having to pay the total 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 wish 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, it is strongly recommended that you employ an IRS tax advocate as they will know the best way to navigate these troubling waters.

A 90% Seizure by the IRS

Unfortunately, if you do not reply in the proper fashion, as stated 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 scrutinize. If this is your reality, then know whichever way you decide to respond, from the first contact you must have a strategy put in place.

If you provide them with information you ought not to 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). Do not simply respond to the IRS without first devising a strategy. Without the proper plans in place, you could easily render yourself a fish out of water when trying to appeal the CP90.

Whatever You Decide, Don’t Ignore

Just as with any IRS notice, the route to fixing the problem is never by ignoring it. With some notices, this occurrence does not apply as vigorously. With the CP90, it is law. Being that a set deadline has been given to you and expressed their intention of levying your assets, you cannot allow the notice to sit without a reply.

While it may be frightening and unsettling, it is vital 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 make sure each party receives the best possible outcome. However, being that these notices tend to be a bit more serious, it is advisable that you seek the assistance of a tax professional.

What If You Disagree With Your CP90?

If you disagree in any way with the information on the CP90, you have the right to appeal. In order to commence that process, complete Form 12153, request a Collection Due Process Hearing. Mail the form to the address on your CP90.

As soon as you submit an appeal, your case moves from the IRS collection department to the appeal department. Typically, it implies that you get an individual assigned to your case. That can be a lot easier than calling the IRS and handling different reps every time.

Appealing also gives 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 grants 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 handle calls or letters.

What Happens If You Ignore a CP90 Notice?

Ignoring a CP90 notice can have grave 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.

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.

To get assistance with your tax debt, request a consultation to talk with knowledgeable agents. Tax professionals can assist you in understanding notices, stop asset seizure, set up payment plans, and more.