IRS intent to Levy (CP90)

A Notice of Intent to Levy (CP90) is the final warning from the IRS before they seize your assets to satisfy unpaid tax debt. This notice is issued only after multiple prior warnings have been ignored. If you do not take immediate action within 30 days of the letter's date, the IRS may levy your wages, bank account, or other assets.   

The IRS sends a CP90 Notice when:
✔️ You have unpaid tax debt that remains outstanding.
✔️ Previous notices were sent, but you did not respond or arrange payment.
✔️ The IRS is preparing to levy your assets to collect the tax balance.

If you do not respond within 30 days, the IRS can and will:
🔹 Levy your bank account, freezing and seizing funds.
🔹 Garnish your wages, deducting directly from your paycheck.
🔹 Seize Social Security benefits or other government payments.
🔹 File a federal tax lien against your property, damaging your credit.

An IRS bank levy allows the IRS to seize funds directly from your bank account to cover unpaid taxes. If you fail to respond to previous notices or arrange a payment plan, the IRS can issue this levy, causing your bank to freeze your account and eventually transfer the funds to the IRS. 

However, they cannot take this action without proper legal notice.

Once the IRS issues a bank levy:

• Your bank must hold the funds for 21 days before releasing them to the IRS.
• You must act quickly to request a full or partial release of the levy.
• This action is a last-resort effort by the IRS to get your attention.

Under federal law, the IRS is required to release a bank levy if:
✅ You pay the full amount owed (tax, penalties, and interest).
✅ The statute of limitations for tax collection has expired.
✅ You prove that releasing the levy will increase the IRS’s ability to collect the debt.
✅ You have an approved installment agreement (unless it specifically allows continued levies).
✅ The levy causes significant economic hardship for you.
✅ The fair market value of the seized assets exceeds the tax liability, and partial release will not affect collection.

The IRS may voluntarily release your funds if:

• They failed to send the required notices or did not allow enough time for your response.
• They did not follow proper IRS procedures.
• You entered into a payment plan, but they levied your assets anyway (without specific authorization).
• Returning your assets would help you pay your taxes more effectively.
• It is in the best interest of both you and the government.

If you receive a Notice of Intent to Levy, there are several ways to prevent or remove the levy:

1. Request a Collection Due Process Hearing

• Must be filed within 30 days of receiving the notice.
• This can be an effective defense, but you must present a strong case quickly to succeed.

2. Enter Into an Installment Agreement

• You must be in compliance with tax filings.
• The IRS may require detailed financial information before releasing the levy.

3. Request an Offer in Compromise (OIC)

• A possible solution if you qualify for settling your tax debt for less than the full amount.
• Keep in mind that more than 50% of OIC applications are rejected, and non-refundable fees apply.

4. Use the IRS Collection Appeals Program (CAP)

• A fast-track method to challenge an IRS levy.
• However, this option does not allow for judicial review, meaning the IRS’s decision is final.

If you’ve received a Notice of Intent to Levy, immediate action is critical. The longer you wait, the harder it becomes to stop the IRS from seizing your assets. 📞Contact Us at 720-988-0688 to explore your options and protect your financial future.