Understanding IRS Notice CP90: What It Is and How To Respond

• Posted by Steave Harikson February 13, 2025 Filed in Business 28 views
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  Receiving a notice from the IRS can be a stressful experience, especially when it’s unexpected. One such notice that often causes confusion is the IRS notice CP90. If you've received this notice, it's essential to understand what it means, why it was issued, and what steps you need to take to resolve the issue. In this article, we will break down everything you need to know about IRS Notice CP90 and how you can handle it effectively with the help of professionals like TaxFortress.

  What is IRS Notice CP90?

  IRS Notice CP90 is sent by the Internal Revenue Service (IRS) when they are preparing to levy (or seize) your assets due to unpaid taxes. This notice is part of the IRS's collection process and indicates that you have serious tax debt that has not been resolved. The IRS uses this notice to alert taxpayers that they are at risk of having their wages, bank accounts, or other assets garnished if the debt remains unpaid.

  Unlike other IRS notices, CP90 is specifically tied to the issue of tax liens and levies. It's a formal reminder that the IRS can take action if the taxpayer does not respond. The CP90 notice typically follows several other IRS notifications, which means it's usually not the first sign that there’s an issue.

  Why Did You Receive IRS Notice CP90?

  You would have received Notice CP90 if:

  1. Unpaid Taxes: You owe back taxes, and the IRS has been unsuccessful in getting payment through earlier notices.

  2. Failure to Respond: You have not responded to previous IRS notices regarding the tax debt.

  3. Collection Action is Imminent: The IRS intends to take legal action to collect the debt, which may include seizing your wages, bank accounts, or even property.

  The notice gives you an official warning and outlines what actions will be taken if you fail to act.

  Key Information on IRS Notice CP90

  When you receive a CP90 notice, there are several key details you’ll want to focus on:

  • Tax Amount Due: The notice will clearly state how much you owe, including penalties and interest.

  • Deadline for Response: There will be a deadline by which you must respond to avoid further action. This is usually 30 days from the date of the notice.

  • Collection Action Details: The notice will specify that the IRS is preparing to levy your assets or take other collection actions.

  Steps to Take When You Receive IRS Notice CP90

  If you’ve received an IRS CP90 notice, here are the steps you should take:

  1. Review the Notice Carefully

  Take time to carefully read through the notice. Confirm that the tax debt listed is accurate. If you disagree with the amount, this is the time to dispute it.

  2. Pay the Debt or Set Up a Payment Plan

  If you're able to pay the debt in full, this is the quickest way to resolve the issue. If paying the full amount isn't possible, you may qualify for an installment agreement (a payment plan) with the IRS. This allows you to pay the debt over time.

  3. Request a Hearing

  If you believe the IRS is wrong in their decision, or you have a valid reason for not paying, you can request a Collection Due Process (CDP) hearing. This is a legal proceeding where you can present your case to the IRS, and it helps you stop the levy process while you dispute the debt.

  4. Seek Professional Help

  Dealing with tax issues can be overwhelming, especially when you're at risk of an IRS levy. Enlisting the help of a tax professional, like TaxFortress, can guide you through the process. A professional can help you navigate your options, prevent or delay IRS collection actions, and work out a favorable resolution.

  How TaxFortress Can Help You Resolve IRS Notice CP90

  At TaxFortress, we understand the complexities of dealing with IRS issues. Since 2003, we've helped American taxpayers resolve their tax liabilities by offering personalized support throughout the entire process. Whether it’s negotiating an installment agreement, disputing the tax debt, or representing you at a Collection Due Process hearing, our experts can help you manage the situation efficiently and avoid the consequences of IRS levies.

  Final Thoughts: Take Action Before It's Too Late

  IRS Notice CP90 is a serious reminder that the IRS can take significant actions if you fail to address your tax debt. However, it’s not the end of the road. Understanding your rights and options is crucial in protecting your assets and resolving your tax issues. Whether you're able to pay the debt immediately or need professional assistance to negotiate with the IRS, it’s important to act quickly. The longer you wait, the more difficult it becomes to resolve the situation.

  Don’t let IRS Notice CP90 control your financial future. Take charge, and seek the help of experts like TaxFortress to guide you through the process. With the right support, you can secure a more stable and financially secure future, free from the looming threat of IRS collection actions.