Receiving IRS Notice CP90 signals a final warning informing you that unpaid taxes have been assessed and are overdue. If you do not respond within 30 days, the IRS will begin to levy your assets, including wages, bank accounts, and property.

To avoid further collection actions, make addressing the CP90 notice your number one priority. First, carefully read the notice to ensure all the information is accurate. Then, take immediate action by either making full payment, setting up a payment plan, or requesting a Collection Due Process hearing. Ignoring this notice can result in severe financial consequences, such as asset seizures.

Don’t wait to address your IRS Notice CP90. Call Ronald Arthur Stearns Sr. PLLC today at 1-512-257-0570 for experienced help. Our team is ready to provide the guidance and support you need to resolve your tax issues quickly and effectively. Take control of your financial future—contact us now!

What is IRS Notice CP90?

IRS Notice CP90 is issued when the IRS intends to levy your assets to collect unpaid taxes. This tax notice may be the first communication you receive regarding your tax issues, but it is a final notice before the IRS takes collection actions.

You have 30 days from the date of the CP90 notice to act, whether by making a payment, setting up a payment plan, or requesting a Collection Due Process hearing. Failing to respond within this timeframe allows the IRS to proceed with asset seizures, limiting your options to resolve the issue.

Taxpayers can respond to a CP90 notice by filing necessary tax returns, entering into an installment agreement, or requesting a Collection Due Process hearing.

Does CP90 Mean the IRS Will Levy My Assets Immediately?

Receiving a CP90 notice from the IRS is a serious matter, but it does not mean that your assets will be levied immediately. Acting promptly upon receiving a CP90 notice will help to avoid severe financial consequences. By responding within the 30-day timeframe, you can negotiate with the IRS and potentially prevent the levy of your wages, bank accounts, or property. Ignoring the notice, however, will allow the IRS to proceed with its collection actions, which can significantly impact your financial stability.

Immediate Steps to Take Upon Receiving IRS Notice CP90

Read and Understand the Notice

Upon receiving an IRS Notice CP90, read and understand the notice thoroughly. The CP90 notice specifies the owed amount, relevant tax years, and the deadline to respond. Carefully reading the notice clarifies your obligations and the steps you need to take. As your final warning before the IRS initiates collection actions, understanding all provided information is essential.

Verify Accuracy

After reading the notice, verify the accuracy of the provided information. Ensure the tax amount, relevant tax years, and other details are correct. If discrepancies are found, contact the IRS immediately to resolve them. Addressing any discrepancies early can prevent further complications and help you manage your tax situation more effectively.

What if I Don’t Understand Part of the Notice — Who Can Help Me Clarify It?

If you find any part of the IRS Notice CP90 confusing or unclear, seeking professional assistance is crucial. Misinterpreting the notice can lead to missed deadlines or incorrect actions, which may exacerbate your tax issues. Here are some resources to help you clarify the notice:

1. Tax Professionals: Certified Public Accountants (CPAs), Enrolled Agents (EAs), and tax attorneys are well-versed in IRS notices and tax law. They can provide detailed explanations and guide you on the appropriate steps to take. Engaging a tax professional ensures that you fully understand the notice and comply with IRS requirements.
2. IRS Helpline: The IRS provides a helpline for taxpayers needing assistance with notices. Calling the IRS helpline can help you get direct answers to specific questions about your CP90 notice. However, be prepared for potentially long wait times and ensure you have your notice and relevant tax information on hand.
3. Local Taxpayer Advocate Service (TAS): The TAS is an independent organization within the IRS that helps taxpayers resolve problems with the IRS. If you’re facing financial difficulties or have tried unsuccessfully to resolve your tax issues through normal channels, the TAS can provide personalized assistance.
4. Online Resources: The IRS website offers a wealth of information, including FAQs and detailed explanations of various notices. Reviewing these resources can help you gain a better understanding of your CP90 notice and the actions required.
5. Consulting Ronald Arthur Stearns Sr. PLLC: Our firm handles complex IRS issues, including CP90 notices. We offer personalized consultations to help you understand every aspect of the notice and develop a clear plan of action.

Taking immediate steps to clarify any confusion about your IRS Notice CP90 is essential to avoid severe financial consequences. Professional guidance ensures you’re well-informed and prepared to take the necessary actions to resolve your tax issues effectively.

Exploring Your Options to Resolve Unpaid Taxes

If you cannot pay the full tax balance, you have options. Each option has its benefits and requirements, and choosing the right one depends on your financial situation:

Full Payment

Making a full payment is the most straightforward way to resolve your tax debt. If you agree with the IRS Notice CP90 and can afford to pay the full amount, it will immediately halt any planned collection measures. Once the IRS receives the full payment, the debt is cleared, and no further action is pursued.

Installment Agreement

If you cannot pay the full amount by the due date, request an installment agreement. This allows you to pay your debt over time in manageable monthly payments, avoiding immediate asset seizure.

To establish an installment agreement, contact the IRS and set up a payment plan that suits your financial situation. This arrangement allows you to pay off your debt gradually without risking immediate collection actions.

Offer in Compromise

An Offer in Compromise (OIC) lets you settle your tax debt for less than the full amount owed if you can demonstrate financial hardship. Negotiating an offer in compromise can help resolve your outstanding tax debt while avoiding severe collection actions.

Submit an application to the IRS and provide detailed financial information to support your claim of financial hardship. If approved, the IRS may accept a reduced amount to settle your tax debt.

Currently Not Collectible Status

If facing significant financial difficulties, request Currently Not Collectible status. This temporarily halts IRS collection efforts, giving you time to improve your financial situation and providing temporary relief.

To qualify, demonstrate that paying your tax debt would cause undue financial hardship. Here are some of the documents you would need to provide to show your financial hardship:

• Recent pay stubs
• Bank statements
• Monthly living expenses (rent/mortgage, utilities, groceries)
• Medical bills and insurance premiums
• Credit card statements
• Documentation of any other debts or financial obligations

The IRS will review your financial situation and, if approved, will temporarily suspend collection actions.

How Does Declaring Bankruptcy Affect My Unpaid Taxes and IRS Collections?

Depending on the type of bankruptcy you file, certain tax debts may be discharged, meaning you are no longer legally required to pay them. However, not all tax debts are eligible for discharge, and specific criteria must be met for tax debts to be considered.

In a Chapter 7 bankruptcy, eligible tax debts may be discharged if they meet the criteria, such as being at least three years old and having been assessed by the IRS at least 240 days before filing. In a Chapter 13 bankruptcy, you may be required to repay a portion of your tax debts through a repayment plan that lasts three to five years.

Filing for bankruptcy also triggers an automatic stay, which temporarily halts IRS collection actions, including levies and wage garnishments. This provides immediate relief and gives you time to reorganize your finances. Consulting with a tax professional or bankruptcy attorney can help you understand how bankruptcy affects your specific tax situation and guide you through the process.

Requesting a Collection Due Process Hearing

If you disagree with the IRS’s intent to levy, request a Collection Due Process (CDP) hearing to formally contest the IRS’s proposed actions.

A CDP hearing serves as an opportunity to challenge the IRS’s collection actions before they proceed with levying your assets. During this hearing, you can present your case, propose alternative payment arrangements, and discuss any issues related to the tax debt. This process allows you to negotiate with the IRS and potentially reach a more favorable resolution.

Expect to provide detailed financial information and documentation to support your arguments. The hearing, conducted by an impartial IRS officer, will review your case and consider your proposals.

Filing Form 12153

To initiate a Collection Due Process hearing, complete and submit Form 12153 within 30 days of receiving the CP90 notice. Once submitted, the IRS will schedule a CDP hearing to discuss your case and review your arguments. This form allows you to formally contest the IRS’s actions and present your case in a structured setting.

Benefits of a CDP Hearing

A Collection Due Process hearing offers several benefits, including:

• Temporarily suspending any levy actions by the IRS, giving you time to present your case and explore resolution options.
• Providing an opportunity to challenge the IRS’s proposed actions and negotiate a more favorable outcome.
• Allowing you to present your case before an impartial IRS officer, who will review your arguments and consider your proposals.
• Offering a platform to address your unpaid tax issues and seek relief from severe collection actions.
• Helping to protect your financial stability by preventing immediate asset seizures.

During the hearing, challenge the IRS’s proposed actions and negotiate a more favorable result.

What Outcomes Can Result from a Collection Due Process Hearing?

A CDP hearing can lead to several potential outcomes, depending on the specifics of your case and the arguments presented. Possible results include:

• Stopping the Levy: The IRS may decide to halt the levy on your assets if you present a compelling case or negotiate a satisfactory payment arrangement.
• Installment Agreement: You may be able to set up an installment agreement, allowing you to pay off your tax debt over time in manageable monthly payments.
• Offer in Compromise: If you can demonstrate financial hardship, the IRS might accept an Offer in Compromise, allowing you to settle your tax debt for less than the full amount owed.
• Currently Not Collectible Status: If you prove that paying your tax debt would cause undue financial hardship, the IRS may temporarily suspend collection actions by granting you Currently Not Collectible status.

Having a tax representative, such as Ronald Arthur Stearns Sr. PLLC, during a CDP hearing is crucial. A tax professional can provide seasoned guidance, ensure all necessary documentation is accurately presented, and effectively negotiate with the IRS on your behalf. Engaging our firm means you are backed by years of experience and a deep understanding of IRS processes, increasing your chances of a favorable result.

Documentation and Record-Keeping

Keeping all documents, including copies of IRS notices, payment receipts, forms submitted to the IRS, and any correspondence with tax professionals, helps in tracking all actions taken regarding the notice. This systematic approach can aid in organizing and storing tax records effectively, ensuring that all documents are accurately maintained and easily accessible for any future IRS inquiries.

Best Practices for Record-Keeping

Key records to keep include:

• Tax returns
• Receipts for deductions
• Correspondence with the IRS
• Proof of payment
• Payment plans
• Bank statements
• Pay stubs
• Monthly living expenses (rent/mortgage, utilities, groceries)
• Medical bills and insurance premiums
• Credit card statements
• Documentation of any other debts or financial obligations

Organizing records can be accomplished through digital storage solutions, such as cloud services, for easy retrieval and backup. This approach ensures that all your important documents are securely stored and easily accessible when needed.

What if I’ve Lost Critical Tax Documents — How Can I Retrieve Them?

Losing important tax documents can be stressful, especially when dealing with an IRS Notice CP90. There are several steps you can take to retrieve these documents and ensure you have the necessary information to address your tax issues effectively:

1. Contact the IRS: The IRS can provide copies of past tax returns, transcripts, and other relevant documents. You can request these by calling the IRS helpline or using the “Get Transcript” tool on the IRS website.
2. Reach Out to Your Tax Professional: If you previously worked with a CPA, tax attorney, or other tax professional, they might have copies of your tax documents on file. Contact them to request duplicates.
3. Access Online Accounts: Many financial institutions, employers, and other entities provide electronic copies of tax documents through online accounts. Log in to your accounts to download necessary documents such as W-2s, 1099s, and bank statements.
4. Request from Third Parties: If you received tax documents from third parties, such as investment firms or mortgage lenders, contact them directly to request copies. They are often able to provide duplicates upon request.
5. Check Your Records: Sometimes, important documents might be misplaced rather than lost. Thoroughly check your personal records, including file cabinets, digital storage, and email archives, to locate any missing documents.

Consequences of Ignoring IRS Notice CP90

Ignoring IRS Notice CP90 can lead to severe consequences, including asset seizure. If you fail to respond within the specified 30-day period, the IRS can:

• Levy your wages, seizing your income and leaving you with reduced financial resources.
• Freeze and seize funds from your bank accounts, making it difficult to access your money.
• Place a lien on your property, which can affect your credit score and ability to sell or refinance your home.
• Garnish your Social Security benefits, reducing the amount you receive each month.
• Seize other personal assets, such as vehicles or valuable possessions, to satisfy the tax debt.
• Take legal action against you, including filing a lawsuit to collect the owed amount.
• Increase the amount you owe through additional penalties and interest, further compounding your financial burden.

The IRS has the legal authority to take possession of various assets if the notice is ignored, resulting in the loss of income and access to funds, making it even more difficult to manage financial obligations. Taking immediate action to address the notice is essential to protecting your assets and resolving your tax issues.

Consulting a Tax Professional

A tax professional can provide the necessary guidance and strategies to address your tax issues after receiving a CP90 notice. A tax attorney, in particular, offers legal protection and representation that a layperson cannot.

Engaging a tax professional ensures compliance with IRS regulations and helps you avoid costly mistakes. They assist in understanding your options, negotiating with the IRS, and protecting your rights throughout the process.

Why Seek Professional Help?

Consult a tax attorney before making any payments or arrangements regarding the CP90 notice. A tax attorney can represent you in court if necessary and provide the legal protection needed when dealing with the IRS.

Our Approach at Ronald Arthur Stearns Sr. PLLC

At Ronald Arthur Stearns Sr. PLLC, we focus on providing personalized service to each client who receives an IRS Notice CP90. Recognizing the urgency and gravity of this notice, we tailor our strategies to meet your specific needs promptly. Our team will:

1. Thoroughly Review Your CP90 Notice: We’ll examine the notice in detail to ensure all information is accurate and identify any discrepancies.
2. Verify Your Tax Information: We’ll cross-check the owed amount, relevant tax years, and other details to confirm their correctness and address any inaccuracies with the IRS.
3. Develop a Response Plan: Based on your financial situation, we’ll help you choose the best course of action, whether it’s making a full payment, setting up an installment agreement, or requesting a Collection Due Process hearing.
4. Prepare and Submit Necessary Forms: We’ll assist you in completing and submitting any required forms, such as Form 12153 for a CDP hearing, ensuring they are filed within the 30-day deadline.
5. Negotiate with the IRS: Our team will communicate directly with the IRS on your behalf to negotiate terms and protect your assets from seizure.
6. Provide Ongoing Support: Throughout the process, we’ll keep you informed and provide continuous guidance to ensure you understand each step and feel confident in your decisions.

We believe in dedicated representation, our goal is to help you resolve your CP90-related tax issues efficiently and effectively, providing guidance through the difficulties of the IRS process.

How Ronald Arthur Stearns Sr. PLLC Can Help You

At Ronald Arthur Stearns Sr. PLLC, our personalized approach ensures that each client’s unique tax situation is addressed with tailored strategies and reliable guidance. With over two decades of experience in serving Texas taxpayers, Ronald A. Stearns himself oversees every case, providing the dedicated representation and legal protection you need.

What sets us apart from our competitors is our commitment to clear communication and transparency. We keep you informed at every step, ensuring that you fully understand your options and the actions being taken on your behalf. Our extensive knowledge of tax law and the IRS process allows us to navigate the complexities of your case efficiently and effectively.

Don’t face the IRS alone when dealing with a CP90 notice. Contact Ronald Arthur Stearns Sr. PLLC today at 1-512-257-0570 and take the first step towards resolving your CP90-related tax issues. Let us help you protect your assets from levy actions and secure your financial future.