Receiving a notice from the Internal Revenue Service (IRS) can be stressful, particularly when it involves potential collection action. One of the most serious notices the IRS sends is the CP90 notice, formally titled “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.” This notice informs taxpayers that the IRS intends to seize assets such as bank accounts, retirement funds, or other personal property to settle unpaid tax debt. It also provides an essential legal right to request a Collection Due Process hearing before the levy takes effect.
For individuals who rely on Social Security benefits, the CP90 notice presents added concern. The IRS can legally levy a portion of monthly Social Security payments through the Federal Payment Levy Program (FPLP) to collect seriously delinquent tax debt. If you depend on these benefits as your primary source of income, even a partial reduction can cause significant financial strain. Understanding the notice and your response options is crucial to maintaining your financial stability.
This article will explain what the CP90 notice means, how it fits into the IRS levy process, and what to expect next. We’ll cover steps within the 30-day response window, how to appeal or halt a levy, and what payment options are available. Special attention is given to the rights and protections available for Social Security recipients facing IRS enforcement actions. By understanding your options, you can take action to protect your income and resolve your IRS tax debt responsibly.
What Is an IRS CP90 Notice?
The CP90 notice is an official communication from the IRS titled “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.” The final warning is before the IRS enforces collection actions to resolve your unpaid tax debt. These actions may include levying your bank accounts, retirement accounts, or other personal property. The notice also explains your right to request a Collection Due Process hearing within 30 days.
This notice is part of a sequence the IRS follows to collect unpaid federal taxes. It generally comes after a series of previous notices, including the CP14 (balance due), CP501, and the CP504 (“Intent to Levy”). While earlier notices serve as reminders, the CP90 formally states the IRS intends to move forward with a levy action if no resolution is reached. The 30-day period gives you a final opportunity to respond or seek collection alternatives.
Included in the CP90 notice are several important details: the amount of your tax liability, a breakdown of interest and penalties, and instructions for how to file for a process hearing. It will also identify the types of property that may be targeted, such as Social Security benefits, state tax refunds, or other assets. If you’ve received earlier warnings, the CP90 likely references them as well.
Acting promptly is essential. If you ignore the CP90, the IRS may begin collection actions like wage garnishments or bank account levies without further warning. However, you can take steps to respond by understanding what the CP90 represents and where it fits in the levy process. Filing the proper forms, requesting a hearing, or entering into payment arrangements may help you halt levies before they begin.
The CP90 notice is dire for individuals who rely on Social Security income, as the IRS can legally levy up to 15% of these payments through the Federal Payment Levy Program (FPLP). This applies when a taxpayer has a seriously delinquent tax debt and fails to resolve the balance. For many seniors and disabled individuals, even a slight reduction in monthly income can cause significant financial strain. Basic needs like food, utilities, and healthcare may quickly become unaffordable.
Not all Social Security benefits are subject to levy. The IRS typically targets Title II benefits, including retirement, survivor, and disability insurance. However, Supplemental Security Income (SSI) is exempt, along with lump-sum death benefits and payments to children. Knowing which benefits are protected can help you respond appropriately to the CP90 and avoid unnecessary stress.
Acting quickly after receiving a CP90 notice is essential if you depend on Social Security. You can request a Collection Due Process (CDP) hearing, propose payment arrangements, or demonstrate that a levy would cause financial hardship. If no action is taken within 30 days, the IRS may issue a CP91 notice, signaling a pending levy on your benefits. Responding on time may help you halt levies and avoid further collection actions that affect your ability to meet basic living expenses.
The Federal Payment Levy Program (FPLP) is an automated system that the IRS uses to collect unpaid federal taxes from government-issued payments. It allows the IRS to seize up to 15% of eligible federal income, helping enforce tax collection without needing a court order. This program was established under the Taxpayer Relief Act of 1997 and is coordinated with the Bureau of the Fiscal Service. The FPLP can significantly impact financial stability for taxpayers relying on fixed federal income.
The IRS can take some federal payments through the FPLP, like Social Security benefits, military retirement, federal employee salaries, and civil service annuities. Other affected payments are those made to government contractors, Medicare providers, and the Railroad Retirement Board. Under separate federal-state agreements, state income tax refunds may also be taken away. However, not all payments are included; the IRS checks to see if you qualify before issuing levies.
Some benefits are excluded from the levy under the FPLP. Supplemental Security Income (SSI), benefits paid to children, and lump sum death payments are not subject to automatic seizure. The IRS may also exempt certain disability payments depending on their classification and the taxpayer’s financial condition. Understanding whether your income source is protected is key to preparing a proper response to a CP90 notice.
The IRS doesn't take FPLP from some taxpayers because they make too little money. If your income is less than 250% of the federal poverty level, you might not have to make your payments. This filter is meant to protect low-income people from dealing with more problems. Still, it's essential to check your eligibility and send in any paperwork that may be needed to stop or avoid levy action.
A CP90 notice is a severe warning from the IRS that they intend to begin enforced collection to resolve your unpaid tax debt. The notice outlines how much you owe, what type of debt, and what property may be levied—such as bank accounts, Social Security benefits, or other assets. It also informs you of your right to request a Collection Due Process hearing within 30 days. Understanding each part of the notice is the first step toward protecting your income and responding effectively.
You have 30 days from the date on the CP90 notice to respond. If you fail to act, the IRS can proceed with a levy on your wages, retirement accounts, or state tax refund without additional warning. Submitting a hearing request or other response within the window will temporarily delay collection while the IRS evaluates your case. This window allows you to stop or reduce the levy before it begins.
Before choosing your next step, confirm that the tax liability listed in the notice is accurate. Log in to your IRS account or review previous tax returns and notices to ensure the IRS hasn’t made a mistake. These details can support your case if your account reflects payments already made or penalties you believe were misapplied. Verifying the debt ensures you don’t agree to pay more than you owe.
Once you’ve confirmed the debt, explore how to resolve it. If you can pay in full, doing so will stop all collection actions. If not, you may qualify for monthly payments, an Offer in Compromise, or Currently Not Collectible status. These options may help you avoid or reduce IRS levy action. If you're unsure where to start, consult a tax professional or contact the Taxpayer Advocate Service for guidance on choosing the best path forward.
If you've received a CP90 notice, it's essential to know that the IRS has not yet levied your Social Security benefits—but it intends to. You have a limited window to respond before the agency begins enforced collection. The IRS offers several legal and administrative remedies to help stop or reduce the impact of a levy, especially if you're experiencing financial hardship or living on a fixed income. Acting quickly allows you to protect your income and explore reasonable collection alternatives.
A Collection Due Process (CDP) hearing is one of the strongest tools to stop a levy before it begins. To request this hearing, you must file Form 12153 within 30 days of the CP90 notice date. The hearing allows you to dispute the debt, request a different resolution, or explain why the IRS should not levy your benefits. During this process, the IRS must temporarily delay collection, giving you time to resolve the issue.
A CDP hearing is appropriate when:
Setting up an installment agreement may stop a levy if you cannot fully pay your tax liability. You can apply online or submit Form 9465 by mail. Once approved, the IRS will halt levies if you make your scheduled monthly payments. This option is practical for Social Security recipients who can afford smaller payments over time.
An Offer in Compromise allows eligible taxpayers to settle their IRS tax debt for less than the full amount. This option is available if you show that paying the full debt would create economic hardship or if there’s doubt about the total amount owed. To apply, submit Form 656 and provide detailed financial information. While your application is under review, the IRS will not take levy action.
You might be able to get Currently Not Collectible (CNC) status if you can't make any payments without giving up basic living expenses. Fill out Form 433-F to show that paying the debt would make it impossible to meet your basic needs. If the IRS agrees, it will stop collecting, but it may still file a federal tax lien, and interest will keep adding up. CNC status gives you a break for a while without affecting your income.
If the IRS has already begun levying your Social Security benefits, you can request a release if the levy creates immediate financial hardship. Contact the IRS using the number on your levy notice and be ready to submit documentation.
The IRS may release the levy if:
These remedies won’t eliminate your debt, but can stop the levy while you arrange a longer-term solution.
Additional Administrative Options
If you're facing financial hardship or have been unable to resolve your issue through the IRS directly, the Taxpayer Advocate Service (TAS) may be able to help. TAS is an independent organization within the IRS that assists taxpayers experiencing delays, errors, or levy actions that threaten financial stability.
You can contact TAS by calling 1-877-777-4778 or by submitting Form 911. Their support is free, and they may intervene to stop collection or help set up payment arrangements. TAS is a good resource when you’ve made reasonable efforts to work with the IRS but haven’t received a resolution. They can help ensure that your case is reviewed fairly and quickly.
You may still file for an Equivalent Hearing if you missed the 30-day deadline to request a Collection Due Process hearing. Submit Form 12153 within one year of the CP90 notice date. This allows you to propose collection alternatives or raise concerns, although the IRS may still proceed with levy action during the review. Unlike a CDP hearing, you cannot appeal the result to the Tax Court.
You can also use the Collection Appeals Program (CAP) to challenge IRS actions, like a rejected installment agreement or a proposed levy. Fill out Form 9423 to ask for a CAP review. Even though you can't appeal CAP decisions in court, they are usually settled quickly and may stop more collection actions.
To prepare for a Collection Due Process (CDP) hearing or IRS appeal, gather financial records that accurately reflect your current situation. This includes recent bank statements, Social Security award letters, pay stubs if applicable, rent or mortgage documents, and evidence of monthly expenses like utilities or medical bills. If you own retirement accounts, vehicles, or other assets, be ready to document their current value. The IRS uses this information to evaluate whether you can afford to pay or qualify for relief.
If you're claiming financial hardship, complete and submit Form 433-F. This form details your income, monthly costs, and assets, helping the IRS assess your ability to cover essential living expenses while meeting your tax obligations. If a levy on your Social Security benefits or bank accounts would leave you unable to pay for food, housing, or medicine, this form becomes especially important. Accuracy and completeness are essential to prevent delays or denials.
Depending on the resolution you’re requesting, you must also submit additional IRS forms. Use Form 12153 to request a CDP or Equivalent Hearing, Form 9465 to apply for an installment agreement, or Form 656 to request an Offer in Compromise. Each form must be filed by the deadline and supported by proper documentation, including previously filed tax returns. Although self-representation is allowed, many taxpayers benefit from working with a tax professional. Low Income Taxpayer Clinics (LITCs) offer free or low-cost help if cost is a concern. Careful preparation and documentation can significantly improve your outcome.
After resolving a CP90 notice, it’s critical to prevent similar problems from occurring again. Many taxpayers, especially those on fixed incomes, face repeated IRS enforcement actions simply because they do not adjust their withholding or plan for additional sources of taxable income. Social Security recipients can take one proactive measure by submitting IRS Form W-4V to request voluntary tax withholding from their monthly benefit. This helps reduce the risk of underpayment and avoids accumulating a new unpaid tax debt.
You may need to make quarterly estimated tax payments if you receive income from other sources—such as retirement accounts, pensions, or freelance work. Failing to do so could result in unexpected tax bills, penalties, or future levy notices. Tracking your annual income can help you meet the IRS’s payment expectations.
To stay compliant and reduce the risk of enforced collection actions in the future:
Keeping up with changes to tax law, keeping good records of your finances, and responding quickly to any letters from the IRS are also crucial for long-term compliance. A consistent plan to avoid future tax liabilities and protect their limited income benefits seniors and retirees. Being aware and ready is essential for financial peace of mind.
A CP90 IRS notice signals intent to levy your assets under Internal Revenue Code Section 6331 and provides your right to a Collection Due Process (CDP) hearing. A CP91 notice targets Social Security income through the Federal Payment Levy Program. Both serve to collect unpaid taxes, but CP91 involves automatic garnishment. The CP90 can affect other property, including wages, vendor payments, and physical assets, and is considered a final step before enforced collection begins.
The IRS can garnish wages, seize bank accounts, and levy other property to collect unpaid taxes. While Social Security income is commonly targeted, the IRS may also pursue tax levies on retirement accounts, financial institution balances, and Alaska Permanent Fund Dividend payments. Suppose you owe taxes and do not respond to a levy notice. In that case, the government’s interest is protected through aggressive collection efforts until your unpaid balance is resolved through payment or relief.
You have 30 days from the date on the CP90 notice to request a Collection Due Process hearing. If you don’t respond, the IRS intends to proceed with levy actions on assets like wages or bank accounts. This is part of their legal claim to collect unpaid taxes. Quick action can halt collection efforts and give you time to negotiate a payment plan, submit supporting documents, or apply for hardship relief under applicable IRS guidelines.
You can request a payment plan even after receiving a CP90 notice, as long as the IRS hasn’t already enforced collection. A formal payment plan can prevent further tax levies and allow you to settle your unpaid balance over time. However, the IRS may require full disclosure of your income, expenses, and assets before accepting terms. Payment plans are a common alternative to enforced levies on wages, bank accounts, or other property.
Receiving a CP90 after paying the tax may mean the IRS account hasn’t been updated. You should immediately contact the IRS and provide evidence of payment. If verified, the levy will be canceled. This error can impact bank accounts or financial institutions holding your funds. It’s essential to resolve the issue promptly to prevent mistaken collection efforts. A tax professional can also help ensure the IRS properly credits your account and stops the levy.
To protect physical assets and other property, you should act within the 30-day window on the CP90 notice by requesting a Collection Due Process hearing. The IRS may delay or withdraw levy actions if you demonstrate financial hardship. Otherwise, your assets are vulnerable to seizure under their legal claim to collect unpaid taxes. Prompt response, documentation, or a formal payment plan can help prevent loss of valuable property during IRS enforcement actions.
Iowa Income Taxpayer Clinics (LITCs) offer free or low-cost help. If you owe taxes and can't afford representation, they assist with IRS notices, levy actions, and setting up payment plans. LITCs can also help defend your rights under Internal Revenue Code Section 6330, respond to CDP hearings, and represent you in Tax Court. These services are invaluable when involved in government collection efforts and needing guidance to protect your income, property, and financial future.
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