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Final Notice Before Levy on Social Security Benefits: CP 91/CP 298 IRS Notice

Posted by Brandon Keim | Oct 25, 2021 | 0 Comments

If you receive a letter in the mail from the IRS notifying you that they intend to levy part of your Social Security benefits, you're undoubtedly worried. There's no need to panic, but you do need to act quickly to resolve the issue before the IRS levies your benefits. An experienced tax attorney can help you resolve the underlying issue and possibly work out a settlement or payment plan with the IRS. 

What is a CP 91/CP 298 Notice?

The IRS will send a CP 91/CP 298 notice to let you know that they intend to levy 15% of your social security payments to pay a balance owed to the IRS. The notice will typically give you two options:

  • Paying the balance due in full or
  • Setting up a payment plan

If you don't contact the IRS within 30 days, they will collect your balance due from your social security payments.

What Should You Do if You Receive a CP 91/CP 298 Notice?

If you receive a CP 91/CP298 notice from the IRS, it's important to read it carefully. The header section of the notice should include the notice number, date, and the IRS contact number. Because you only have 30 days from the notice date to contact the IRS, it's important to retain a skilled tax attorney as soon as possible. 

Why is a Skilled Tax Attorney Important?

While the IRS generally offers you two options: Pay us in full or pay us over time, you may have more options. A skilled tax attorney can look at your financial situation and underlying tax issues and offer you more possibilities.

In some cases, you may be eligible to defer payments for financial hardship. This deferral can allow you to temporarily forego paying until your financial situation improves. However, interest and penalties will continue to accrue during the deferral on the balance you owe the IRS.

A tax attorney may also negotiate an offer in compromise with the IRS, where the agency will accept less than the full amount you owe to settle your debt. The IRS will consider your ability to pay, income, expenses, and asset equity in their negotiations.

If you've received a CP 91/CP 298 notice from the IRS, it's time to seek skilled tax guidance. If you need help, 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.

About the Author

Brandon Keim

A Certified Tax Law Specialist, CPA, partner at Frazer Ryan Goldberg & Arnold LLP, and former Senior IRS Trial Attorney, Brandon Keim holds an LL.M. in Taxation from Georgetown University Law Center.

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