CP90 and CP297: what to do with a final notice of intent to levy

What these two notices are

CP90 and CP297 are two versions of the same kind of letter. Each tells you that the IRS intends to levy, which means to take property or money to cover a tax balance that is still unpaid. Each also tells you that you have a right to ask for a Collection Due Process hearing, often shortened to CDP, before that happens.

The difference between the two numbers is not something the IRS pages explain in detail, so the practical move is to treat them the same way: find the notice number in the corner of your letter, read the instructions on it, and follow those rather than anything generic you read online.

Why the date on the notice matters more than anything else

A hearing request is time-limited. The IRS pages for these two notices do not print a number of days, and they point you to the notice itself. A separate IRS list of letters that offer an appeal shows CP90 and CP297 with a Form 12153 request due within 30 days from the date of the letter. Because different IRS pages count from different starting points (the date of the letter in one place, receipt in another), the safest reading is the deadline printed on your notice, which is generally about 30 days.

If you are reading this with the notice already sitting in a pile, check the date today. A request that arrives late may still get a more limited kind of hearing, but the full set of hearing rights is tied to the on-time request.

Read these parts of your notice first

Before deciding anything, locate four things on the page so you are working from your own facts:

• The tax year or period the balance relates to, and the amount the notice says is owed.
• The date of the letter and any response date it prints.
• The address or fax number for hearing requests. The IRS says the hearing address on the notice is different from the address used for payments.
• The phone number for the office that sent it, in case you want to confirm your account before you decide.

Your options

There are usually three directions, and they are not mutually exclusive. First, you can pay the balance if you are able to. Second, you can ask for a payment arrangement or another collection alternative, and the IRS online payment agreement tool is one place to start. Third, you can request a Collection Due Process hearing with the independent Office of Appeals by completing Form 12153.

A hearing is where Appeals considers collection alternatives. The underlying tax itself can be disputed there only if you did not previously have an opportunity to dispute it, such as an earlier notice you never received. Form 12153 asks you to give a reason for the hearing, so write that reason in plain terms, for example that you want to propose a payment plan because you cannot pay in full today.

A timely request generally pauses levy while the hearing runs. Appeals then issues a determination. After a determination you generally have 30 days to ask the Tax Court to review it. The IRS also describes a faster Collection Appeals Program that cannot be taken to court, so it is worth reading the IRS publication that compares the two before choosing.

What to attach and how to send it

Attach a copy of the notice to Form 12153. If you are proposing a payment plan or other alternative, the IRS says to include the financial statement it names for individuals or businesses. If you are asking for relief as an innocent spouse, that has its own form. If someone else signs for you, include the authorization form that allows it.

Send the package to the hearing address on the notice and keep proof of when you sent it. Consider a method that gives you a receipt. Keep a copy of every page you mail.

Where a drafting tool fits

Form 12153 leaves limited room to explain your situation. A short cover statement can help the reviewer see the reason you want a hearing and what you are proposing. IRS Audit Defense Pro is software that helps you organize your facts and draft a response letter you review and send yourself; it is not a law firm, CPA or enrolled agent. It can pull the dates and amounts from your notice into one organized draft, but the decision to request a hearing, and what you ask for, stays with you.

If you want a second opinion

The Taxpayer Advocate Service is an independent office inside the IRS that helps people with collection problems, and a tax professional can represent you if you sign the authorization form. Neither is required, and you can handle a hearing request yourself.

Frequently asked questions

Sources

• IRS: Understanding your CP90 notice
• IRS: Understanding your CP297 notice
• IRS: Collection Due Process (CDP) FAQs
• IRS: Letters and notices offering an appeal opportunity

Related guides

• Understanding an LT11 or Letter 1058 noticeAn LT11 or Letter 1058 is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing.
• How to request a Collection Due Process hearingFind the Collection Due Process notice, note the deadline printed on it (generally about 30 days), complete Form 12153 with your reasons, attach what applies, and send it to the hearing address on the notice.
• Part of your paycheck is going to the IRS: what that meansPeople often say wage garnishment for what the IRS calls a wage levy.
• If the IRS has levied your bank accountAn IRS bank levy is a legal seizure of money in your account to pay a tax debt.
• CP504: a serious collection notice and how to respondA CP504 is an IRS collection notice about an unpaid balance that the IRS describes as a notice of intent to levy, including a state tax refund.
• The Taxpayer Advocate Service: Help When an IRS Problem StallsThe Taxpayer Advocate Service is an independent office within the IRS that can help when an IRS problem is causing financial hardship, has gone unresolved for more than 30 days, or the IRS missed a promised date.