https://www.google.com/url?sa=i&url=http%3A%2F%2Fwww.legacytaxresolutionservices.com%2Firs-tax-notices-letters%2Fnotice-cp91-final-notice-before-levy-on-social-security-benefits&psig=AOvVaw0tOcxqpMm-eYW_2Fuh7t8m&ust=1639778442690000&source=images&cd=vfe&ved=0CAsQjRxqFwoTCKD2ve-o6fQCFQAAAAAdAAAAABADThe Notice CP91 is usually issued by the IRS to inform the taxpayer that if they fail to pay their debts, they will undoubtedly levy their social security benefits. This notice, however, may have been issued as the final to a string of others prior to it. Usually, the IRS would get in touch with the taxpayer to notify them about certain outstanding debts before issuing the CP91.
Once the taxpayer does not address the previous notices, the IRS then sends this notice to state that they are going to take action and that the problem has gotten really serious. If it happens to be that you are the recipient of a CP91, then you will probably feel intimidated, perplexed, and scared. It is vital for you to know that regardless of the debts owed, the IRS is almost always willing to assist a taxpayer in rectifying their debts. There are quite a few options available to resolve this problem and they do not require you to pay your full outstanding amount within the given deadline.
· Don’t Ignore the Notice
Whatever you do, the CP 91 tax notice should not be ignored. Ignoring the IRS notice will only result to your benefits being levied and you will be put in bad position with the IRS. Because this notice is really serious, your best bet is to contact a highly recommended tax resolution firm, an enrolled agent, CPA, or tax attorney with good knowledge tax debt cases. You have a good shot at a settlement because you are past your earning years. When settling your taxes, however, you must show hardship (form 433-A) and must be able to come up with the money to apply and 20% of the amount that you propose to settle the debt for. Plus, you have to show where you got the money to pay for this process, how much you plan to pay and when (An Offer in Compromise- form 656). Getting a tax representative to get all the documents, forms, and finances in order, in a way that the IRS will approve, can really increase your chances of a good settlement.
If you are not qualified for An Offer in Compromise, there is still some assistance you can get from a tax resolution firm. They might be willing to set up a partial payment plan (where you only pay what you can afford every month). The summary of this is, you have to do something because your benefits are at a detrimental end.
· Carefully Read the Notice
The aim of the notice, while stating that the IRS is ready to levy your social security benefits, is also to let you know about the amount you owe. It is vital that you evaluate the notice carefully to confirm that what the IRS is proposing is, indeed, true. You may want to carry out a tax return second look, or present the necessary documents to confirm the information.
We should bear in mind that the IRS can also make mistakes; from their system mechanics, human faults, to freak incidents, there can often be errors in their calculation. This is why it is important to ensure that the information is accurate before replying to the notice.
· Pay the IRS If You Can
The most recommended as well as effective way of resolving this problem is to pay to the IRS the balance accrued to them. Ways of effecting this payment is either via online platforms or issuance of checks. Regrettably, this is not always as rational for the taxpayer at hand, as major financial grief is followed by tax debt so therefore, it is safe to say alternative options are available
Other Options
The IRS usually shows compassion towards a taxpayer who is trying to handle their tax debt. If you are having a hard time paying the amount you owe, it is advisable to seek IRS Offer in Compromise. You can also consider applying for an IRS payment plan, which will offer you the chance to pay smaller payments incrementally to cover the whole of the debt. In very rare circumstances, the IRS will bring any charges or penalties accrued, and extend the time limit to give the taxpayer more time.
· What If The Information Is Incorrect?
If after evaluating the IRS notice CP91 and you discover you do not agree to the notice, then you must take rapid action. First, make copies of all documents that you have which support your claim. Then get an IRS tax advocate to assist you in correspondence with the IRS, as they will know how to put up a strategy that will guarantee (if you are not mistaken) your problem is solved.
· Can The IRS Levy Your Social Security Benefits?
The IRS can definitely levy your social security benefits for taxes owed. This is the nature of the notice received; being that the IRS is informing you that if you do not pay, they will levy your social security benefits in an amount equal to or less than the withstanding tax debt.
Can Social Security Benefits be garnished for State Taxes?
You may find yourself wondering how to find out if you owe taxes to the IRS. Once this notice arrives, that question has been answered. Although this is for federal taxes, note that the state has no right to levy your social security benefits. Only the IRS has the right and they will only apply it towards your federal tax debt, federal student loans, or child support.
Do I Have A Deadline?
The IRS notice CP91 gives a deadline. Usually, you have a thirty-day period for you to take action. If you decide to ignore the notice, then penalties and interest will accumulate, and the IRS can proceed in levying your social security benefits. It is essential to note that you should never contact the SSA (Social Security Administration) when it comes to a tax matter. They can neither stop nor help you in solving your tax debt or the IRS’s intent to levy your benefits.
Can I Deal With The Situation Myself?
Your tax matters can be handled by you either via mailed correspondence or by contacting the number given on the notice. An IRS representative will aid you in your case, give valuable information, and work with you to resolve the issue.
Whenever the IRS decides to levy any asset (bank account, property, wages, etc.) it means you have failed to correspond, pay, or explain your situation. In which case, being that this notice is a revealing sign of your case being escalated, it is not advisable to deal with the IRS on your own.
Seek a Professional
While there are advantages and disadvantages of hiring professional experts and tax advisors, they are often a significant tool in handling tax debt. Being that this issue is of the great importance and the IRS intends to levy your social security benefits, it is recommended you seek the assistance of an expert. They will guide you through and ensure that you receive the best possible outcome.