Receiving an IRS notice such as CP 90 or CP 297 can be unsettling. These notices signify severe tax-related issues that can potentially put your assets or property at risk. But panic alone won’t resolve anything. It’s essential to understand the content of these notices and the steps you should take after receiving them. This article will guide you meticulously through the process and offer practical tips to handle this tricky situation.
Understanding CP 90/CP 297 Notices
The IRS sends CP 90 or CP 297 notices to taxpayers who owe back taxes and have ignored multiple attempt by the IRS to collect this outstanding debt. These notices serve as the final warning before the IRS takes definitive action like levying your assets.
Steps to Take After Receiving a CP 90/CP 297 Notice
Here’s a step-by-step guideline on what to do after receiving a CP 90/CP 297 notice:
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Analyze the Notice: First, go through the notice carefully to understand the exact issue.
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Consult With a Tax Professional: Seek advice from a tax professional or an attorney who specializes in tax laws. They can guide you through the resolution process.
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Resolve the Tax Debt: The most straightforward solution is to pay your tax debt in full, if feasible.
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Consider Alternative Solutions: If you cannot pay the full amount, the IRS offers various payment plans and options.
Frequently Asked Questions
What should I do if I disagree with the CP 90/CP 297 notice?
If you think there has been a mistake, it is vital to contact the IRS quickly. You can also appeal the notice if you believe you have reasonable grounds.
What happens if I ignore these notices?
Continued disregard of these notices may lead to seizure or levying of your assets, bank accounts, wages, and other income by the IRS.
Conclusion
Navigating the complexities of IRS notices like CP 90/CP 297 can be challenging. However, with the right approach and professional guidance, you can minimize the risks and handle this situation effectively. Remember, ignoring the issue wouldn’t make it go away. Instead, immediate and appropriate action can help protect your assets and bring you in good stead with the IRS.
