A CP90 Notice is the IRS’s final warning before it may begin collecting unpaid taxes through actions such as wage or bank levies. This is serious, but it also provides an important opportunity to take action before collection efforts move forward.
If you received a CP90 Notice or are facing IRS collection action in Rockville, call Gabaie & Associates, LLC at (410) 358-1500 or visit our Contact Page for a free consultation.
What Is a CP90 Notice From the IRS?
A CP90 Notice is an IRS Final Notice of Intent to Levy and Notice of Your Right to a Hearing. It is one of the final warnings the IRS sends before taking collection action to collect unpaid taxes.
The notice typically means the IRS believes:
- You have an unpaid federal tax balance
- Previous notices have been sent
- The IRS has not received payment or a resolution
- Collection action may begin if you do not respond
Receiving a CP90 Notice does not mean the IRS will immediately seize your property or empty your bank account. However, ignoring the notice can limit your options and may allow the IRS to move forward with enforcement.
Why Did I Receive a CP90 Notice?
The IRS generally sends a CP90 Notice after a taxpayer has received earlier collection notices and the tax debt remains unresolved.
Common reasons someone may receive a CP90 Notice include:
- Unpaid income taxes
- Unfiled tax returns
- Unresolved IRS assessments
- Missed payments on a previous agreement
- Failure to respond to IRS correspondence
For individuals and business owners in Rockville, a CP90 Notice may come after months or years of unresolved tax issues. By this stage, the IRS is typically moving from communication toward active collection efforts.
What Is a Collection Due Process Hearing?
A Collection Due Process (CDP) hearing gives taxpayers the opportunity to challenge an IRS levy or propose alternatives before certain collection actions move forward.
During a CDP hearing, you may be able to discuss issues such as:
- Whether the IRS followed proper collection procedures
- Whether the tax debt is accurate
- Whether you qualify for a collection alternative
- Whether another resolution option may be appropriate
Possible collection alternatives may include:
- Installment Agreements
- Offer in Compromise
- Currently Not Collectible status
- Other IRS resolution options
A CP90 Notice includes instructions for requesting a hearing, including the deadline for submitting your request. Acting quickly is important because these deadlines are strict.
Can the IRS Take My Property After Sending a CP90 Notice?
A CP90 Notice gives the IRS authority to move toward collection action, but the IRS must generally follow required procedures before levying assets.
A levy is different from a tax lien:
| Tax Lien |
Tax Levy |
| Creates a legal claim against your property |
Allows the IRS to seize assets or collect funds |
| Protects the government’s interest in unpaid taxes |
Is an actual collection action |
| Does not immediately take property |
Can affect wages, bank accounts, and other assets |
If you receive a CP90 Notice, addressing the tax issue before a levy occurs may provide more options for resolving the debt.
What Should I Do After Receiving a CP90 Notice?
The first step is not to ignore it. Instead, review the notice carefully and determine:
- The amount the IRS says you owe
- The deadline to request a hearing
- Whether you have received previous IRS notices
- Whether your tax returns are current
You should also gather relevant information, including:
- IRS correspondence
- Tax returns
- Income records
- Expense information
- Details about your assets and financial situation
Before communicating with the IRS, it may be helpful to understand your available options.
What Happens After You Receive a CP90 Notice?
If you don’t respond before the deadline, the IRS may move forward with collection actions, including filing a federal tax lien or issuing a levy.
Depending on your circumstances, you may still have options, such as requesting a Collection Due Process hearing, setting up an Installment Agreement, applying for an Offer in Compromise, or requesting Currently Not Collectible status. The right solution depends on your financial situation and where you are in the collection process.
Possible next steps may include:
- Requesting a Collection Due Process hearing if you qualify
- Entering into an Installment Agreement
- Applying for an Offer in Compromise
- Requesting Currently Not Collectible status due to financial hardship
- Challenging errors related to the tax assessment or collection process
The right approach depends on factors such as:
- The amount of tax debt owed
- Whether required tax returns have been filed
- Your income and expenses
- Available assets
- Previous IRS collection activity
- Whether the IRS has already issued a levy
Essentially, the CP90 Notice is a warning that collection action may be close, but it may also provide an opportunity to address the issue before more aggressive enforcement occurs.
How Can You Stop an IRS Levy After a CP90 Notice?
The best way to stop a potential levy depends on your situation and where you are in the IRS collection process.
Some possible options include:
Request a Collection Due Process Hearing
A CP90 Notice generally includes information about your right to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals.
A CDP hearing may allow you to challenge certain collection actions and discuss alternatives such as:
- Installment Agreements
- Offers in Compromise
- Collection alternatives
- Disputes involving IRS procedures
Because strict deadlines apply, missing the deadline to request a hearing can affect your rights.
Set Up an IRS Payment Arrangement
If you cannot pay your tax debt in full, an Installment Agreement may allow you to make monthly payments over time.
The IRS evaluates factors such as:
- Your total balance
- Income
- Expenses
- Assets
- Filing compliance
Request Financial Hardship Relief
If paying the IRS would prevent you from covering necessary living expenses, you may qualify for Currently Not Collectible status.
This does not eliminate your tax debt, but it may temporarily pause collection activity while your financial situation is reviewed.
What If the Information on My CP90 Notice Is Wrong?
If you believe the IRS notice contains incorrect information, it is important to address the issue rather than assume it will resolve itself.
Possible issues may include:
- Incorrect tax balance
- Payments that were not properly credited
- Filing errors
- Identity-related concerns
- Disputes involving the underlying tax liability
Depending on the circumstances, you may need to provide documentation or request a review of the IRS records.
A tax attorney can help evaluate whether the issue involves a collection problem, an assessment dispute, or another IRS matter.
How Gabaie & Associates Can Help With a CP90 Notice in Rockville
Receiving a CP90 Notice can be stressful, especially when the IRS is warning that collection action may follow. Understanding your rights and responding before the deadline can make a significant difference.
Our team at Gabaie & Associates helps individuals and business owners in Rockville address IRS collection matters by:
- Reviewing CP90 Notices and IRS correspondence
- Explaining available collection options
- Evaluating whether a CDP hearing request may be appropriate
- Communicating with the IRS on your behalf
- Negotiating payment arrangements when appropriate
- Exploring alternatives such as Offers in Compromise or Hardship Status
- Helping protect your rights throughout the collection process
Every IRS collection matter is different. The right strategy depends on your financial situation, tax history, and the actions the IRS has already taken.
Frequently Asked Questions About CP90 Notices
What is a CP90 Notice from the IRS?
A CP90 Notice is an IRS Final Notice of Intent to Levy and Notice of Your Right to a Hearing. It warns that the IRS may begin collection action if the tax debt is not resolved.
Does a CP90 Notice mean the IRS is going to take my paycheck?
Not immediately. A CP90 Notice gives you an opportunity to respond before the IRS moves forward with enforced collection actions such as wage levies or bank levies.
How long do I have to respond to a CP90 Notice?
The response deadline is listed on the notice. In many cases, taxpayers have 30 days to request a Collection Due Process hearing, but you should review your specific notice carefully.
Where is your Rockville tax attorney office?
If you need assistance responding to a CP90 Notice, visit the Gabaie & Associates Rockville office page for location information, directions, and contact details.
Talk to a Rockville IRS Tax Attorney About a CP90 Notice
A CP90 Notice should not be ignored. While receiving one can be stressful, responding quickly may help you understand your options and address the tax issue before the IRS takes further collection action.
Whether you are facing a potential levy, unpaid tax debt, or another IRS collection matter, Gabaie & Associates can help you evaluate your situation and determine the appropriate next steps.
If you received a CP90 Notice in Rockville, don’t wait until collection action begins. Call Gabaie & Associates, LLC at (410) 358-1500 or visit our Contact Page to learn what resolution strategies may be available to you.
