The CP 91 Notice is an important document that taxpayers should pay close attention to. This form is sent by the Internal Revenue Service (IRS) when they plan to levy an individual’s Social Security. In this article, we will go over what the CP 91 Notice is, what it means for your financial situation, and how to appropriately respond.
Understanding the CP 91 Notice
A CP 91 Notice is a final warning from the IRS telling individuals that they have an outstanding tax debt, which they intend to satisfy by levying their Social Security benefits. Essentially, the IRS is informing the taxpayer that they have an intention to take as much as 15% of their monthly Social Security benefit payments until the debt is completely paid off.
Why Am I Receiving This Notice?
Receiving a CP 91 Notice means you have an outstanding tax debt that you have not settled despite previous notices from the IRS. Before sending the CP 91 Notice, the IRS will have sent several other notices, including CP 14, CP 501, CP 503, and CP 504, each progressing in severity and urgency.
How Should I Respond to This Notice?
Receiving a CP 91 Notice necessitates immediate action. Ignoring the notice can result in serious consequences, including loss of your Social Security benefits. It is advisable to immediately contact the IRS or a tax professional to discuss your options, which may include setting up a payment plan, submitting an Offer in Compromise, or proving that the levy would cause significant hardship and should be stopped.
FAQs
How much time do I have to respond to a CP 91 Notice?
Usually, the IRS gives taxpayers 30 days to respond after receiving the CP 91 notice. If not, the levy process will begin.
What if I can’t afford to pay my tax debt?
If you cannot afford to pay your tax debt, it might be possible to negotiate a payment plan or compromise with the IRS. Alternatively, you may qualify for ‘currently not collectible’ status if you can demonstrate that paying would cause significant hardship.
Can I stop the IRS from levying my Social Security Benefits?
Yes, there are several ways to stop the levy, such as settling your tax debt, demonstrating that the levy causes undue hardship, or showing the IRS made an error in assessing your taxes.
Conclusion
The CP 91 Notice is a serious document that requires immediate attention. Ensuring that you understand what the notice means and how to appropriately respond will help protect your Social Security benefits and keep your financial health intact. Seek professional help if needed, to ensure a proper and clear resolution of your tax debt.
