Getting a letter from the IRS about unpaid tax debt is always a little scary. It can seem overwhelming or like the IRS is threatening you—especially if the IRS intends to take part of your Social Security benefits. If you receive the CP298 notice from the IRS, you shouldn't panic. Let's break down the CP298 so you know exactly what it is and how to deal with it.

What Is the IRS CP298 Notice?

If you received a CP298 notice from the IRS, it means that the IRS is going to levy or seize up to 15 percent of your Social Security benefits to help pay your tax debt. Usually, the IRS sends other notices before the CP298 to let you know about your unpaid taxes.

How to Handle an IRS CP298 Notice

After receiving the CP298, you have 30 days to respond. You can take one of three actions:

1.    Pay the outstanding amount in full.

2.    Request a payment plan.

3.    Appeal the decision if you disagree.

You should not contact the Social Security Administration (SSA) after receiving CP298. The SSA can't do anything about the notice and won't be able to help you.

If you're unable to pay the full amount before the deadline, you may be able to make a payment plan with the IRS, such as an Offer in Compromise. You can also appeal the CP298 if you think the IRS has made an error. If you go this route, however, you'll have to provide proof that you've paid.

Whether you decide to do a payment plan or appeal the decision, you should get help from a professional tax attorney. They can ensure that the option you choose is the right one for your situation.

Get Help from a Reliable Tax Attorney

Don't let the IRS dip into your Social Security benefits. Call a Maryland tax attorney to help you address the CP298 and devise a plan. Our team at Gabaie & Associates works with Maryland taxpayers in Baltimore, Columbia, Frederick, and Rockville. Call us today at (410) 358-1500 or fill out our contact form to make an appointment.