IRS CP297 Notice – Final Notice of Intent to Levy

Getting an IRS CP297 Notice, a Final Notice of Intent to Levy, can be alarming. This letter means the IRS intends to take collection action on your unpaid taxes, including seizing assets, levying bank accounts, or garnishing wages. For many taxpayers, this is the first time they realize their situation has reached a critical stage.

The CP297 is not an ordinary IRS notice. It is the final warning after several notices have already been sent. Once issued, the IRS can legally move forward with levy actions if you do not respond within 30 days. Ignoring the letter can result in serious financial consequences beyond tax debt.

Taxpayers who receive this notice still have options. You can request a hearing, set up payment arrangements, or explore other relief programs designed to help resolve delinquent tax debt. Acting quickly protects your property, income, and financial stability.

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What is an IRS CP297 Notice?

An IRS CP297 Notice is a Final Notice of Intent to Levy. It is issued when the IRS intends to collect unpaid taxes by seizing assets such as bank accounts, wages, or property. This notice arrives after the IRS has sent several notices about your balance due. When the CP297 is issued, your tax account reflects a serious delinquent tax debt that requires immediate attention.

This notice is more than just a warning. It gives the IRS the legal authority to enforce collection if you do not respond within 30 days. Under Internal Revenue Code section 6330, taxpayers are informed of their right to request a hearing before the IRS Office of Appeals. That right allows you to challenge the levy action, propose payment arrangements, or provide evidence of financial hardship.

Taxpayers should read this letter carefully. It explains how much you owe, the IRS’s intent to levy, and your options for resolving the debt. Responding within the deadline is critical to prevent seizure of funds, property, or other assets.

[Related IRS Form Pages]

Why the CP297 Notice Matters

The CP297 is not just another IRS letter—it is the point where the IRS shifts from sending reminders to taking legal action. By the time this notice arrives, your account is already considered delinquent, and the IRS intends to move forward with seizing funds or property if you do not act.

This notice also reflects the seriousness of your tax situation. It shows that prior letters and opportunities to resolve the balance have passed without action. Now, the IRS is prepared to use its strongest collection tools under the law, and the outcome depends on how quickly you respond.

• It marks escalation: The CP297 notice represents the shift from earlier reminders and payment requests to formal enforcement action. By sending this letter, the IRS signals that prior attempts to collect have failed, and it is prepared to use stronger measures such as levies and garnishments.
  
  
• It highlights urgency: The notice establishes a 30-day deadline for the taxpayer to act before collection actions begin. This time limit clarifies that delaying or ignoring the letter can quickly lead to more serious financial consequences.
  
  
• It confirms risk: Receiving a CP297 means your wages, bank accounts, retirement funds, or even physical property may be seized if you do not respond. The IRS uses this notice to remind taxpayers that the government has broad legal authority to collect overdue taxes.
  
  
• It frames choices: The letter outlines the limited options you have to resolve the balance, including paying in full, setting up an installment agreement, or submitting an Offer in Compromise. By clarifying these paths, the IRS pushes you to decide before enforcement begins.

Consequences of Ignoring the CP297 Notice

If you ignore the CP297 Notice, the IRS can proceed with enforced collection without sending another letter. These actions can have profound and lasting effects on your finances, property, and personal freedom.

• Wage garnishment: The IRS can contact your employer directly and require them to withhold a portion of your paycheck. This money is sent to the IRS until your tax debt is paid or the garnishment is lifted. Losing part of your income can create significant financial strain and make it harder to meet daily living expenses.
  
  
• Bank account levy: The IRS can issue a levy on your bank or investment accounts, effectively freezing your funds. After the levy takes effect, the money is seized and applied to your tax balance. This action can disrupt your financial stability, especially if you rely on those funds for bills or other obligations.
  
  
• Property seizure: In extreme cases, the IRS can seize valuable assets such as homes, vehicles, or personal property to cover outstanding tax liabilities. While less common, this option demonstrates the seriousness of unresolved tax debt. Property seizure not only removes assets but can also create long-term financial hardship.
  
  
• State income tax refund offset: The IRS may intercept any state tax refunds you are due, including unique payments like the Alaska Permanent Fund Dividend. Instead of receiving your refund, it will be applied to reduce your outstanding federal tax debt.
  
  
• Federal tax lien: A lien is a public record that establishes the government’s claim to your property as security for the debt. It can damage your credit score, reduce borrowing power, and complicate efforts to sell or refinance assets.
  
  
• Passport restrictions: Taxpayers with “seriously delinquent” tax debt may face U.S. passport denial or revocation. This can limit your ability to travel internationally or renew your passport.
  
  
• Growing balance: Even if no immediate enforcement action is taken, penalties and interest continue to accrue on unpaid taxes. Over time, this can cause your balance to grow substantially, making it more difficult to resolve.
  
  
• Business disruption: For business owners, the IRS can levy accounts receivable, seize equipment, or disrupt operations by targeting assets critical to daily work. This can threaten the survival of the business and the livelihood of employees.

Relief Options: What You Can Do Within 30 Days

Getting a CP297 Notice does not mean all hope is lost. The IRS provides several ways for taxpayers to resolve delinquent tax debt before enforcement begins. Acting within the 30-day window is critical because once that deadline passes, the IRS can levy wages, seize funds, or place liens on property without further warning. You can protect your income and assets by taking action now while working toward a manageable resolution.

• Full payment: Paying the balance in full immediately stops enforcement and closes your case, though this option is not realistic for many taxpayers.
  
  
• Installment agreement: Entering into a monthly payment plan allows you to pay off your tax debt over time and prevents levy actions while the deal remains in good standing.
  
  
• Offer in compromise: If you show financial hardship, you may qualify to settle your IRS tax debt for less than the total amount owed.
  
  
• Penalty abatement: If your debt grew because of penalties, you may request relief based on reasonable cause or first-time abatement, which can reduce the overall balance.
  
  
• Currently not collectible status: If paying even a small amount would create financial hardship, the IRS may temporarily suspend collection until your situation improves.

Getting Your IRS Transcripts (Essential First Step)

Before deciding how to resolve your CP297 Notice, it is essential to understand the details of your tax account. IRS transcripts provide a complete picture of your tax liability, payments, penalties, and collection activity. Reviewing these records helps you verify the amount you owe and prepare the proper documents to request a hearing, apply for an installment agreement, or seek other relief.

• Tax account transcript: This transcript shows your current balance, penalties, interest, and any collection actions already taken.
  
  
• Wage and income transcript: This transcript lists income reported to the IRS by employers, banks, and other sources.
  
  
• Record of account transcript: This transcript combines tax return information and account history for a complete overview.
  
  
• How to obtain: You can request transcripts online at IRS.gov, by phone, or by filing Form 4506-T through the mail.

When to Seek Professional Help

Handling a CP297 Notice on your own can feel overwhelming, especially if the amount you owe is significant or your financial situation is complicated. While some taxpayers can contact the IRS directly and set up a payment plan, many find that professional guidance provides peace of mind and stronger results. Knowing when to involve a tax professional can distinguish between a stressful process and a manageable resolution.

• High balance owed: If you owe more than $10,000, it is often in your best interest to consult a tax professional who can negotiate with the IRS on your behalf.
  
  
• Complex financial situation: If you have multiple years of unpaid taxes, business ownership, or other complicated financial circumstances, professional guidance can help you sort through the details.
  
  
• Risk of enforcement: If your wages, bank accounts, or property are already at risk of levy, a tax attorney or enrolled agent can intervene quickly to protect your assets.
  
  
• Need for representation: If you request a hearing or appeal, having a licensed professional represent you ensures your case is presented clearly and accurately.

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Frequently Asked Questions

How long do I have to respond to a CP297 notice?

You have 30 days from the date on the notice to respond. You may request a Collection Due Process hearing, set up a payment arrangement, or fully resolve your tax liability during this time. If you fail to act by the deadline, the IRS can move forward with levy enforcement, including seizing wages, bank funds, or property.

Can the IRS take money from my bank account immediately?

No, not immediately. The IRS must wait until the 30-day response window has passed before it can levy funds. Once that period ends without you being able to take action, the IRS can legally freeze and remove money from your bank account. This enforcement leaves you with little warning, so responding promptly to the CP297 notice is very important.

Will filing for a hearing stop collection activities?

Yes. Filing Form 12153 to request a Collection Due Process hearing suspends most collection efforts until the IRS Office of Appeals reviews your case. During this pause, you can challenge the debt, propose payment arrangements, or provide documentation of financial hardship. Acting within the deadline ensures that you keep these rights before enforcement begins.

Can I set up a payment plan after receiving the CP297?

Yes. You can apply for an installment agreement after the IRS sends a CP297 notice. By arranging a payment plan, you can stop levy actions and gradually pay your balance in monthly installments. The IRS offers several options, including guaranteed, streamlined, and partial-payment agreements, depending on the total amount you owe and your financial situation.

What if I cannot afford to pay anything right now?

If paying any amount would create financial hardship, you may qualify for Currently Not Collectible status. This program temporarily suspends IRS collection actions until your financial circumstances improve. Although penalties and interest may continue to accrue, it provides relief from immediate enforcement. The IRS will review your account periodically to determine whether you can resume payments.

Can the IRS take my home?

It is possible, but rare. The IRS generally avoids seizing primary residences because the legal process is complicated and requires court approval. More commonly, the IRS files a federal tax lien against your home. A lien makes it challenging to sell, refinance, or borrow against the property until the debt is resolved, so acting quickly matters.

What happens if I ignore the CP297 completely?

If you do not take action, the IRS can proceed with full enforcement measures. These include wage garnishment, bank levies, property seizure, and filing a federal tax lien. In addition, taxpayers with seriously delinquent tax debt may face passport restrictions under federal law. Ignoring the notice guarantees that consequences will escalate, so timely action is always in your best interest.

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