The CP297 Notice is a Final Notice of Intent to Levy that the IRS sends to taxpayers when they have failed to pay their tax debt despite previous warnings. This notice alerts the taxpayer that the IRS plans to begin levying assets, such as bank accounts or wages, unless immediate action is taken to resolve the debt. Taxpayers are also given the right to request a Collection Due Process (CDP) hearing to appeal the levy.
Key elements of the CP297 Notice:
- Intent to Levy: The notice informs taxpayers that the IRS will seize assets if the tax debt is not resolved. This could include garnishing wages, levying bank accounts, or taking other enforcement actions.
- Hearing Rights: Taxpayers have 30 days from the date of the notice to request a CDP hearing, where they can dispute the levy or propose alternative resolutions, such as an installment agreement.
- Payment and Resolution Options: The notice outlines ways for taxpayers to resolve their debt, including paying in full, negotiating a payment plan, or submitting an offer in compromise. The IRS encourages taxpayers to contact them as soon as possible to avoid the levy.
- Consequences of Inaction: If the taxpayer does not respond to the notice by the deadline, the IRS will proceed with levying assets to collect the unpaid taxes.
The CP297 Notice is a critical warning for taxpayers with unresolved tax debts, and taking prompt action is necessary to avoid asset seizures.