The CP297A Notice is issued by the IRS to notify taxpayers that they intend to levy a portion of their Social Security benefits to satisfy unpaid tax debt. The levy typically garnishes 15% of the taxpayer’s monthly Social Security payments, and the action will continue until the debt is paid or resolved.
Key points of the CP297A Notice:
- Levy on Social Security: The notice informs the taxpayer that the IRS will levy part of their Social Security benefits. This means that a percentage of the payments will be taken to satisfy the tax debt, which can have significant impacts on taxpayers relying on Social Security for income.
- Right to a Hearing: The notice includes information on how taxpayers can request a Collection Due Process (CDP) hearing to dispute the levy or negotiate an alternative resolution, such as a payment plan or an offer in compromise. Taxpayers must request the hearing within 30 days to stop the levy action.
- Payment Options: The CP297A also provides taxpayers with options for paying the debt to prevent the levy. These options include paying in full or setting up an installment agreement with the IRS.
- Consequences of Non-Action: If the taxpayer does not respond by the deadline, the IRS will proceed with levying their Social Security benefits. The levy will remain in place until the debt is fully paid or a resolution is reached.
The CP297A Notice is a serious step in the IRS’s collection process, and taxpayers should take immediate action to avoid or minimize the impact of the levy on their Social Security benefits.