IRS Notice CP297 Intent to Levy: What this Means and What to Do

irs cp 297 noticeThe CP297 notice is a formal notification that the IRS can levy your assets in 30 days. This notice is almost exactly the same as the CP90 Notice. However, the CP297 is for businesses, while the CP90 is for individuals.

What To Do If You Receive a CP297

You should not ignore this notice. After sending this notice, the agency the legal right to take your assets. To avoid that risk, you should respond or pay within 30 days.

How to Appeal a CP297

If you don’t agree with the notice, you can appeal using Form 12153, Request for a Collection Due Process or Equivalent Hearing.

To appeal, you must be prepared to argue that you do not owe the balance due. You must have a legitimate tax-based reason for the argument, rather than just a general objection.

Unable to Pay a CP297

If you can’t pay your tax bill, you also must respond within 30 days. You may be able to set up a payment plan—keep in mind interest will continue to accrue on the balance while you make payments.

In other cases, you may be able to make an offer in compromise. That is when you settle the bill for less than you owe.

Risks of Ignoring CP297

Ignoring CP297 is not a good idea. The IRS can legally start taking your assets within 30 days. That can include property, vehicles, and income. In most cases, you are only allowed to hold onto essential tools for your trade (up to a certain value). Personally, you can usually keep essential clothing, furnishings, and a primary vehicle.

If the IRS plans to levy your Social Security benefits in particular, you may receive notice CP298. Note that the agency can take 15% of your payments, but it cannot take supplemental Social Security payments.

Getting Help With Unpaid Taxes

If you have received a CP297 notice, it’s time to contact an accountant or tax professional for help. Our professionals can help you set up payment plans or potentially settle the balance for less than you owe. Complete the quote request form or call the number above to talk with a professional.