What's With All Their Embarrassing Paperwork?

They just want your money.

Don't they care about all the trees they're destroying just to talk to me?

You should have seen what it was like before the Paperwork Reduction Act!

1. A description of the Collection Process

2. A description of IRS Notice CP-90 and CP-297 Notice of Intent to Levy

3. FAQ about the IRS Notice of Intent to Levy

1. The Collection Process

If you do not pay in full when you file, you will receive a bill. This bill begins the collection process, which continues through alternative payment options and ends when your account is satisfied.

The first bill you receive will explain the reason for your balance due and require payment in full. It will include the tax due plus penalties and interest that are added to your unpaid balance from the date your taxes were due. You can pay this bill by sending the IRS a check or money order.

If you cannot pay the balance in full, you should pay as much as you can with the notice. The unpaid balance is subject to interest which is compounded daily and a monthly late payment penalty. Therefore, it is in your best interest to pay your tax liability in full as soon as you can to minimize the amount of interest and penalty charged.

If you are unable to pay your balance in full, IRS will consider other payment options discussed in this website. See IRS Payment Plans.

If you are experiencing a significant financial hardship and are unable to currently pay anything, IRS may temporarily suspend collection on your account. Interest and late payment penalty will continue to accrue while you make installment payments or while collection is suspended. See Currently Non Collectible Status.

Once all payment options have been considered and it is determined that you do not qualify for an installment agreement, you may opt to file an offer in compromise. An offer in compromise (OIC) is an agreement between a taxpayer and the IRS that resolves the taxpayer's tax liability. The IRS has the authority to settle, or compromise, federal tax liabilities by accepting less than full payment under certain circumstances. The IRS resolves less than 1% of its balance due accounts through the offer program.

2. CP-90/CP-297 Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing

**This is what the notice looks like.**
FINAL NOTICE Notice of Intent to Levy and Notice of Your Right to a Hearing PLEASE RESPOND IMMEDIATELY We previously asked you to pay the federal tax shown on the next page, but we haven’t received your payment. This correspondence is your notice of our intent to levy under Internal Revenue Code (IRC) Section 6331 and your right to receive Appeals consideration under IRC Section 6330. We may also file a Notice of Federal Tax Lien at any time to protect the government’s interest. A lien is a public notice to your creditors that the government has a right to your current assets, including any assets you acquire after we file the lien. If you don’t pay the amount you owe, make alternative arrangements to pay, or request Appeals consideration within 30 days from the date of this letter, we may take your property or rights to property. Property includes real estate, automobiles, business assets, bank accounts, wages, commissions, social security benefits, and other income. We’ve enclosed Publication 594 with more information, Publication 1660 explaining your right to appeal, and Form 12153 to request a Collection Due Process hearing with Appeals. To Prevent Collection Action, Please Send Your Full Payment Today Make your check or money order payable to United States Treasury. Write your Social Security Number or Employer Identification Number on your payment. Send your payment and the attached payment stub to us in the enclosed envelope. The amount you owe is shown on the next page. If you have recently paid this tax or you can’t pay it, call us immediately at the telephone number shown at the top of this letter and let us know. The assessed balance may include tax, penalties, and interest you still owe. It also includes any credits and payments we’ve received since we sent our last notice to you.

This printed notice will be followed by a detail of the taxes you owe...............

3. FAQ About An IRS Notice of Intent to Levy

What is the notice telling me?

This notice is telling you that IRS intends to issue a levy against any payments you receive for wages or income, as well as any other payment sources they can find, such as federal payments due you, such as vendor payments, OPM retirement benefits, SSA benefits, salary, or employee travel advances or reimbursements because you still have a balance due on your tax account. Property, or rights to property, such as real estate, automobiles, business assets, bank accounts, wages, commissions, and other income are also subject to levy. It is also telling you that IRS may also file a Federal Tax Lien, if they have not already done so.

What do I have to do?

Pay the amount due as shown on the notice or make some other kind of agreement with IRS that we discuss in this website. This may include entering into an installment agreement or being classified Currently non Collectible.

How much time do I have?

You have 30 days from the date of this notice to contact IRS before they issue a levy.

What happens if I don't pay?

If you don't pay or make arrangements to pay, IRS has several options available that they may use to collect the money. One option is to issue a levy against any source ofyour income or money. Another option is to file a Notice of Federal Tax Lien. The lien gives them a legal claim to your property as security or payment for your tax debt.

What if I don't agree or have already taken corrective action?

If you do not agree with the information in the notice, you can call IRS immediately at the telephone number on your notice. If you do not agree with the proposed action, you have the right to file an Appeals Collection Due Process (CDP) hearing request. Your request for a CDP hearing must be filed within 30 days of the notice for full CDP rights.