IRS Notice CP297 Intent to Levy: What this Means and What to Do
The 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.
What is a Tax Levy?
A levy is imposed by the IRS, permitting the seizure of property to cover the tax liability owed. The IRS can impose a levy to garnish wages, seize bank account funds, withhold refunds, seize real estate, and more.
Stopping a Levy
If the IRS has already started to levy your assets there are a variety of ways that the levy can be stopped even after it has started. Every person has a unique situation and there are methods to stop a levy depending upon your situation. For more details on stopping a tax levy after it has already started, please refer to this guide on stopping or releasing a tax levy.
Getting Help With Unpaid Taxes & TaxCure
If you have received a CP297 notice, consider contacting a licensed tax professional for help. TaxCure can help match you with qualified tax professionals based on your unique situation. We have a unique ranking algorithm that can help you find the top tax professionals that can assist with various problems. To see the top tax professionals that can help with unpaid taxes and potential tax levies, start your search here to be assured you talk with the best professional.