If you have received a CP90 Notice from the IRS, it means they are notifying you of their intent to levy certain assets for unpaid taxes. This is generally what most people refer to as garnishments or levies of wages and bank accounts. You have the right to a Collection Due Process hearing.
What should you do if you disagree with the notice?
Within 30 days, request a Collection Due Process hearing on Form 12153, "Request for a Collection Due Process or Equivalent Hearing". You can appeal the intent to levy and other disagreements you have at a Collection Due Process hearing. To put it more clearly, you can dispute the ability to pay the debt, and/or dispute the validity of the debt.
At the hearing, you can present something called a "proposed collection alternative". You can also raise issues why you don't owe the tax; that is, claim innocent spouse relief, or an audit reconsideration.
IRS appeals officers are experts at tax research and usually work methodically. Because of their high level of competence, taxpayers have the right to have a tax attorney or other tax professional represent them at the hearing. It is important that the collection due process hearing be treated as a legal proceeding. The reason is that if you cannot find a reasonable solution at the hearing, you have a right to take the case to tax court.
Tax negotiation options
Interest and applicable penalties will continue to accrue until your balance is paid in full. Below are the most common tools used to negotiate a debt or repay it over time. A legal opinion may be helpful to find and implement the best course of action for you.
- An Installment Agreement is a monthly payment program
- An Offer in Compromise is a one time lump sum payment, negotiated down from the current amount you owe
- Currently non-collectible will put the IRS at bay for a while
- Sometimes, bankruptcy can discharge certain IRS tax debts
- First time penalty abatement can lower the amount you owe
- There is only a certain amount of time that the IRS has to collect on the tax debt. This is called a CSED (Collection Statute Expiration Date). Learn how we can find out how much time the IRS has to collect on your debt by clicking here.
What if you missed the 30 day deadline?
If you miss the 30-day deadline to file a Collection Due Process hearing, you have a year from the date of the Final Notice of Intent to Levy to file something called an "Equivalency Hearing." An Equivalency Hearing is just like a Collection Due Process hearing, with one major difference: there is no right to tax court.
If an Equivalency Hearing is requested, typically the IRS will not levy or garnish you, but they are allowed to do so.
What if you miss the 1-year deadline to file an Equivalence hearing?
You may still request a levy to be released provided it is creating a hardship or by submitting one of the collection alternatives listed above.
For more on what to do when the IRS issues you an CP 90, watch our video below.
If you've received an IRS CP90 Notice and arent' sure what to do, contact us. We can help. Call us at 888-727-8796 or email info@irsmedic.com.
