As a taxpayer, receiving a notice from the IRS can feel intimidating. Among the various notices you may encounter, one that stands out is the IRS Notice CP90. If you’ve recently received this notice, you’re likely wondering what it means, why you received it, and what steps you should take next. Let’s dive into what IRS notice CP90 is, what it indicates, and how you can resolve the situation to avoid further complications.
Understanding IRS Notice CP90
What is IRS Notice CP90?
IRS Notice CP90, also known as the Notice of Intent to Levy, is a serious communication from the Internal Revenue Service indicating that the IRS intends to seize (levy) your assets—such as your bank account, wages, or property—if you do not take immediate action. This notice typically comes after the IRS has made multiple attempts to collect taxes owed and has not received a response from the taxpayer.
The CP90 serves as a final warning, giving the taxpayer 30 days to act before the IRS moves forward with aggressive collection actions. It’s crucial to understand that this notice is not an immediate threat but a notification of the IRS’s intent to take action.
Why Did I Receive IRS Notice CP90?
If you have received Notice CP90, it means that the IRS believes you owe unpaid taxes and has been unsuccessful in its previous attempts to collect the debt. Here are a few common reasons why you might receive this notice:
- Unpaid taxes: If you have outstanding tax liabilities from previous years that you have not addressed, the IRS may issue a CP90 notice.
- Failure to respond to previous IRS correspondence: If the IRS has sent previous notices regarding your tax debt (e.g., CP501 or CP503) and you did not respond, a CP90 notice may follow.
- Lack of a payment arrangement: If you have not set up a payment plan or addressed your tax liability, the IRS may escalate to this point.
What Should You Do If You Receive IRS Notice CP90?
Receiving a CP90 notice doesn’t mean it’s too late to resolve the issue. There are several steps you can take to handle the situation:
1. Review the Notice Carefully
The first step is to read the CP90 notice thoroughly. Check for any errors in the amount owed or the tax period. If there is any incorrect information, you’ll need to take immediate action to dispute it.
2. Pay the Outstanding Debt
If you are able to pay the amount owed in full, this is the quickest and easiest way to resolve the issue. You can pay directly to the IRS or through their online payment system.
3. Set Up a Payment Plan
If you cannot afford to pay the full amount at once, you may qualify for a payment plan. The IRS offers installment agreements, allowing you to pay off the balance over time. Be sure to set up the plan within the 30-day window mentioned in the notice to avoid further enforcement actions.
4. Consider Other Relief Options
If your financial situation makes it impossible to pay the debt, you might be eligible for offer in compromise (OIC), currently not collectible (CNC) status, or bankruptcy. These options may provide relief depending on your circumstances.
5. Consult a Tax Professional
Handling IRS tax notices can be complex, especially if you are unsure about how to proceed. A tax professional, such as a tax attorney or tax resolution specialist, can help you understand your options and negotiate on your behalf with the IRS.
Potential Consequences of Ignoring IRS Notice CP90
Ignoring a CP90 notice is risky. If you fail to take action within 30 days, the IRS will likely move forward with levy actions, such as garnishing your wages or seizing your bank account. These actions can have long-lasting consequences on your finances and credit score.
- Wage garnishment: The IRS may contact your employer to withhold a portion of your wages to satisfy your tax debt.
- Bank account seizure: The IRS can levy funds from your bank account, including savings and checking accounts.
- Property seizure: In extreme cases, the IRS may seize your assets, such as your home or car, and sell them to satisfy your debt.
How Fortress Tax Relief Can Help
At Fortress Tax Relief, we understand how overwhelming it can be to receive an IRS notice, especially one as serious as the CP90. Since 2003, our team of experienced professionals has been helping taxpayers navigate complex tax issues and resolve outstanding liabilities. We can assist you in understanding your IRS notice, negotiating payment plans, or seeking relief options that fit your unique financial situation.
If you’ve received a CP90 notice or are dealing with other IRS collection actions, don’t wait. The sooner you address the issue, the better. Our team is here to guide you through the process and help you protect your assets and financial future.
Conclusion: Don’t Ignore the IRS Notice CP90
Receiving an IRS Notice CP90 can be alarming, but it doesn’t have to spell disaster. By taking prompt and informed action, you can avoid the worst consequences and resolve your tax issues. Whether you pay the debt in full, set up a payment plan, or seek other relief options, addressing the notice quickly is key. If you’re feeling uncertain about how to proceed, consider reaching out to a tax professional for guidance.
Remember, resolving IRS issues is not only about avoiding levies—it’s about securing your financial future. Stay proactive and let Fortress Tax Relief help you navigate this challenge, ensuring you don’t face it alone.