A CP298 Notice is a last-ditch notice by the IRS. Taxpayers will receive this notice when the IRS has been unsuccessful in previous attempts to contact them regarding unpaid taxes. This notice is to inform a taxpayer that the IRS plans to levy 15 percent of that taxpayer's Social Security benefits toward that unpaid tax balance.

How a Taxpayer Should Respond to a CP298 Notice

Taxpayers will generally have 30 days to respond to a CP298 Notice, although they should use the deadline on the notice they received. Taxpayers may take one of the following options upon receiving a CP298 Notice:

•         Pay the outstanding amount in full
•         Request a payment plan 
•         Appeal the IRS's decision if they disagree

Who a Taxpayer Should Contact About a CP298 Notice

While a CP298 Notice involves Social Security, taxpayers should contact the IRS and not the Social Security Administration. The Social Security Administration has no power to resolve tax issues or stop a levy. 

If a Taxpayer Is Unable to Pay their Outstanding Tax

Even when taxpayers can't pay what they owe, they should still be in communication with the IRS about payment plans. Depending on the total amount owed and the taxpayer's situation, different options are available to satisfy a tax debt.

For example, some taxpayers may be eligible for an offer in compromise. This allows a taxpayer to settle their tax debt for less than the total amount owed.

What taxpayers shouldn't do is ignore the IRS. Not responding increases the risk of penalties and may deprive a taxpayer of the right to appeal. It can also limit a taxpayer's options for resolving the tax debt.

If a Taxpayer Disagrees with a CP298 Notice

If a taxpayer believes they've already paid the amount owed or otherwise disagrees with the IRS's explanation, a taxpayer can dispute the penalties. If a taxpayer has already paid the amount owed, they should contact the IRS and be prepared to provide evidence of payment. 

​​If the IRS has contacted you about an unpaid balance, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.