Each year, millions of Americans look forward to receiving a tax refund from the IRS following the filing of their taxes. But for many American taxpayers, the end of tax season marks the beginning of their journey to navigate through their tax debt. Filing taxes is never fun, and can be a time-consuming, confusing process. But what can be even more challenging is trying to navigate through the many steps and options available to those taxpayers working to pay off their debt to the IRS. The IRS issues many notices to delinquent taxpayers, such as a CP90 Notice, and the tax team at Optima Tax Relief breakdown what this notice is all about, and the steps you should take.
Finding any notice from the IRS in your mailbox can trigger anxiety and dread for many – and if you find that you have a CP90 in your mailbox, that is certainly understandable. The IRS uses the CP90 Notice as a way to officially notify the taxpayer of the IRS’ intent to levy certain assets in an effort to collect against your unpaid tax balance. This notification also serves to inform the delinquent taxpayer of his or her right to a Collection Due Process hearing.
If you are the recipient of a CP90 Notice, the IRS recommends initiating a payment plan application to see if you qualify. It is also recommended that at this stage in your tax delinquency, you explore the option of submitting an Offer In Compromise, in order to verify if the IRS is in a position to write off either all or a portion of your outstanding debt. As a taxpayer with an outstanding tax debt, the CP90 Notice also verifies that you have the right to request a Collection Due Process, which grants the delinquent taxpayer the opportunity to appeal the IRS’s intent to levy, as well as an opportunity to state your case as to why the CP90 has been issued in error – to begin that process, you first need to submit a Form 12153.