When the IRS sends you a notification, it can stir up feelings of unease, particularly concerning significant issues such as potential tax collections. Among these notices is the IRS Notice CP90. Knowing how to interpret and react to this notice is essential. Here is a detailed manual on the steps to take upon receiving IRS Notice CP90.
What’s IRS Notice CP90?
Upon receipt of IRS Notice CP90, also referred to as the Final Notice of Intent to Levy and Notice of Your Right to a Hearing, individuals are informed by the IRS that there are outstanding tax liabilities that need to be addressed.
In this letter, it is brought to your attention that the IRS is issuing a last cautionary message declaring their plans to seize your assets, including income, financial accounts, and other possessions, to settle your outstanding tax obligations. Additionally, you are being formally notified of your entitlement to initiate a Collection Due Process (CDP)
What Is IRS Notice CP90 For?
Upon receiving IRS Notice CP90, it signals that there is an outstanding tax debt that has not been resolved despite previous collection efforts. This particular notice is issued following a series of previous notifications urging payment, and it serves as a warning that more forceful collection measures, such as levies, are on the horizon unless prompt action is taken.
Steps to Takes When I Receive IRS Notice CP90
Thoroughly Understand My IRS Notice CP90
Before doing anything else, carefully review the notice provided. It is crucial to go through it comprehensively to grasp its information. The notice will outline the outstanding balance, the specific tax periods under review, and the date by which a response is required. It is imperative to note the deadlines and carefully follow any guidelines outlined in the notice.
Verify the Details
Before proceeding, it is important to confirm the accuracy of the information provided. Take the time to carefully review all details in the notice to make sure there are no discrepancies. Check that the specified tax amount is correct and that the notice is indeed intended for your attention. Should you identify any inaccuracies, feel free to reach out to the IRS promptly to resolve any issues.
What Are My Options
What Are My Choices?
After verifying the correctness of the notification, take some time to explore the possible ways to settle the outstanding debt.
Pay the Amount Owed.
To settle the outstanding balance, it is advisable to remit the entire sum specified in the notification promptly to prevent additional charges and accruing interest. Payment options include settling the debt through the IRS online platform, over the phone, or by sending a check or money order through the mail.
Set Up a Payment Plan
Establishing a payment arrangement if you are unable to cover the entire sum owed, contemplate arranging a payment schedule with the IRS. By doing so, you can conveniently make regular payments to settle your tax obligations gradually.
Offer in Compromise
For individuals facing financial constraints in meeting their tax obligations, an alternative solution is an Offer in Compromise (OIC). This specialized program provides the opportunity to resolve tax debts for a reduced amount if certain qualifying criteria are met, offering relief to those unable to pay the full sum or arrange a payment plan.
Request a Collection Due Process (CDP) Hearing
To initiate a Collection Due Process (CDP) Hearing, you are entitled to request the hearing within 30 days of being served with Notice CP90. This opportunity enables you to discuss your situation with an IRS representative and consider different options for resolving the levy.
Request a CDP Hearing
To initiate a CDP Hearing, submitting your request within 30 days of receiving the notice is essential. Fill out the Tax Form 12153, also known as the Request for a Collection Due Process or Equivalent Hearing, and forward it to the specified address on your notification. Once a timely CDP hearing request is made, the levy process will be temporarily paused until the hearing is held and a determination is reached.
Consult a Dedicated Tax Professional
For professional assistance regarding IRS Notice CP90, it is essential to seek tax advice from an dedicated tax professional. The implications of receiving this notice are significant, and dealing with the associated procedures can be challenging. To effectively address this matter, it is advisable to engage a tax professional like a certified public accountant (CPA) or a tax attorney. They possess the expertise to clarify your choices, assist with documentation, and advocate for you in discussions with the IRS.
Do Not Delay
Act promptly without delay. It is crucial to promptly address the notice, no matter which path you decide to take. Disregarding the IRS Notice CP90 could lead to serious outcomes, such as the confiscation of your belongings and additional monetary fines.
Save My Tax Documentation
Ensuring thorough documentation is essential in managing interactions with the IRS. It is important to retain duplicates of all communication exchanged with the IRS, encompassing official letters, payment records, and any completed forms. The significance of maintaining accurate documentation cannot be overstated, especially when needing to challenge assertions or address potential concerns down the line.
What Happens If I Don’t Respond?
Neglecting to address IRS Notice CP90 can result in serious repercussions. The IRS has the authority to take action by garnishing your wages and seizing your assets. This could involve the IRS deducting a percentage of your earnings directly from your employer in order to settle your outstanding tax obligations.
Should individuals fail to settle their tax debts, the IRS may resort to freezing and confiscating funds from their bank accounts. In more severe instances, the IRS has the authority to seize tangible assets such as properties or vehicles to offset the outstanding amount. Disregarding such notifications will not alleviate the debt, potentially leading to adverse financial consequences.
Tax Help for Those Who Received IRS Notice CP90
When faced with an IRS Notice CP90, it’s natural to feel overwhelmed, but it’s important to approach the situation with a clear mind and a proactive attitude. Exploring the available solutions, enlisting expert support, and swiftly responding can empower you to tackle the notice head-on and progress in managing your tax obligations.
By taking the initiative now, you can avoid exacerbating financial troubles and take charge of your financial well-being. Dedicated tax professionals at RapidTax are committed to assisting you in tackling and resolving any tax issues you may have encountered.
