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The IRS Notice Before Levy on Social Security Benefits

June 5, 2014

Before the IRS places a levy on Social Security Benefits, it sends a notice to inform the taxpayer and provide the taxpayer a final chance to seek resolution. Notice CP 91 or CP 298 is sent by the IRS to inform the taxpayer that they intend to issue a levy against 15 percent of their Social Security benefits. This notice is sent after the initial notices regarding the payment of the tax debt have remained unanswered.

The notice includes information about previous IRS actions, the Social Security Number of the taxpayer, and methods to resolve the tax debt. The IRS encourages full payment of tax debt, but taxpayers that are in a financial difficulty can qualifying for a payment plan, tax debt reduction or even postponement of payment.

It is important that immediate efforts are made to resolve the case. Taxpayers must resolve the tax debt within 30 days from the date on Notice CP 91/298. After the 30-day period passes, the IRS will issue a levy against the taxpayer’s Social Security benefits.

Those with a large tax debt should explore payment options such as Installment Agreements or an Offer in Compromise. Whichever method of resolution is chosen, it is important to contact the IRS as soon as possible so that resolution can be achieved.

If you have questions regarding the notice, you should call the IRS at the phone number listed on the notice. If you do not agree with one or more claims made by the IRS, then you can request an appeal under the Collection Appeals Program (CAP). The request for an appeal must be filed within 30-days from the date on the notice.

You can avoid a levy by resolving your tax debt in the initial stages of the collection process. It is in your best interest to make early efforts of resolution to avoid the accumulation of IRS penalties and interest, and the threat of IRS collection actions.

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