If you’ve received an IRS Notice CP90, it’s natural to feel concerned. After all, it’s a warning of potential tax collection actions, which could lead to serious consequences. However, understanding what this notice means and how to respond can significantly ease your worries and help you take the necessary steps to protect your financial future.
In this article, we’ll walk you through what IRS notice CP90 is, why you might receive it, and the actions you should take to address it effectively.
What is IRS Notice CP90?
IRS Notice CP90, also known as a "Final Notice of Intent to Levy and Notice of Your Right to a Hearing," is sent when the IRS is preparing to take drastic collection actions. Specifically, it notifies you that the IRS intends to seize your assets, such as your wages, bank accounts, or property, to satisfy a tax debt. This notice is the IRS’s final warning, so it’s crucial that you understand its implications and act promptly.
Why Did I Receive IRS Notice CP90?
Receiving a CP90 notice means that the IRS believes you owe taxes that remain unpaid. Prior to sending this notice, the IRS will have attempted to collect the debt through other means, such as sending previous notices or giving you time to make arrangements. However, if you have failed to respond or set up a payment plan, the IRS will escalate the matter, which is when the CP90 notice is issued.
The IRS has the legal authority to take actions such as garnishing wages or seizing bank accounts or other assets. This is why it’s essential to address the issue before the IRS moves forward with its collection activities.
Key Information in the IRS CP90 Notice
The CP90 notice contains several important pieces of information that can guide your next steps:
- Amount owed: The notice will clearly state how much you owe to the IRS, including taxes, penalties, and interest.
- Intent to levy: It will inform you that the IRS intends to take collection action, such as seizing property or garnishing wages.
- Right to a hearing: You’ll also be informed that you have the right to request a hearing with the IRS to resolve the matter, often known as a Collection Due Process (CDP) hearing.
What Should I Do If I Receive IRS Notice CP90?
- Review the Notice Carefully: Take time to read the CP90 notice thoroughly. Make sure the amount owed is correct and that it’s associated with the correct tax year. If you believe there’s an error, you can dispute it with the IRS.
- Act Immediately: You have only 30 days from the date the CP90 notice is issued to request a hearing or to make alternative arrangements. Ignoring the notice will only result in more aggressive collection actions by the IRS.
- Consider Your Options:
- Request a Collection Due Process Hearing: If you believe the IRS is wrong or you need more time to resolve the issue, you can request a CDP hearing. This allows you to present your case to an IRS appeals officer.
- Set Up a Payment Plan: If you owe the taxes but are unable to pay in full, you may be able to set up an installment agreement or explore other payment options like an Offer in Compromise.
- Seek Professional Help: Navigating the complexities of the IRS can be overwhelming. A tax professional, like the team at Fortress Tax Relief, can provide expert guidance and help you determine the best course of action.
- Don’t Ignore the Notice: If you fail to act within the 30-day window, the IRS can proceed with its collection actions, which can include wage garnishment, bank levies, or even asset seizure.
How Fortress Tax Relief Can Help
Dealing with IRS notices can be stressful, especially if you're unfamiliar with the process. At Fortress Tax Relief, we’ve been helping taxpayers resolve their tax issues since 2003. Our experienced team can review your case, provide personalized advice, and work with the IRS on your behalf to reach a solution. Whether you need assistance negotiating a payment plan, requesting a hearing, or disputing an error, we’re here to help.
Conclusion: Taking Control of Your Tax Situation
Receiving IRS Notice CP90 can feel like a threat, but it doesn’t mean your financial future is doomed. By understanding your rights and options, you can take proactive steps to resolve your tax situation before the IRS takes further action. The key is not to panic but to act quickly and decisively.
If you’re unsure about how to proceed or need expert guidance, don’t hesitate to reach out to a professional who can help. Fortress Tax Relief is here to assist with every step of the process, ensuring that your rights are protected and helping you navigate the complexities of IRS tax relief.
Consider this an opportunity to resolve your tax issues once and for all, and to take control of your financial well-being.