Tax Defense Network: IRS CP Notice of Levy

 

Tax Defense Network brings you information about tax levies. A tax levy is the legal seizure of your property by the IRS to satisfy a tax debt. This is the most severe of all collection actions of the IRS.

An IRS levy does not come as a surprise to a taxpayer. Tax Defense Network states that the IRS sends multiple notices and letters informing and requesting the taxpayer to fulfill the tax debt. Tax Defense Network says that before the actual proceedings to levy the property begin, the IRS will send a final CP notice to the taxpayer informing them of their intent to levy.

Tax Defense Network: CP-90/CP-297 Notice of Levy

Tax Defense Network shares information on CP notices 90C and 297C. These letters are sent to inform a taxpayer that the IRS intends to issue a levy against any federal payments due, which includes contractor or vendor payments, OPM retirement benefits, employee travel advances or reimbursements, SSA benefits, and salary.

Assets that may come under a levy are property or rights to property, including real estate, vehicles, business assets, bank accounts, commissions, and wages or other income. The IRS also informs taxpayers that the IRS will also file a federal tax lien if they have not done so already.

Tax Defense Network: How to Respond to the Notice

Tax Defense Network suggests taxpayers respond to this final notice as soon as possible and hire professional help if necessary. The CP notice will explain the reason for the notice and also provide instructions on how you can resolve it.

The IRS will provide you basic information on resolution, but for an in-depth analysis and choosing the most appropriate IRS program, you might need help. You will need to pay the full amount in one payment, or you can choose the various IRS programs to pay the debt amount.

The notice will cover the specifics of the issue about your tax debt, what the IRS has done to inform you about it and what it will do in the future to satisfy the debt. Tax Defense Network informs that the taxpayer has 30 days from the date of the notice to contact the IRS before they begin the levy.

Tax Defense Network: Challenging an IRS Notice

Tax Defense Network informs that if you do not agree with the IRS or have already taken corrective actions regarding your tax debt, you need to contact the IRS immediately by phone and inform them.

The IRS gives you the right to make an appeal through an Appeals Collection Due Process (CDP) hearing. Tax Defense Network notifies that you must file the appeal within 30 days of the notice.

Tax Defense Network shares its experience, knowledge and expertise about U.S. taxes with taxpayers to provide them assistance in resolving their tax issues. A tax levy is one of the dreaded tax debt collection actions of the IRS, and any relevant information about it can help a taxpayer resolve it better. It is always in the best interests of a taxpayer to avoid such severe collection actions by the IRS by resolving their tax debt as early as possible.