The CP91 Notice is a serious notice issued by the IRS informing taxpayers that they intend to levy 15% of their Social Security benefits to satisfy unpaid federal tax debts. This notice is typically sent after multiple attempts to collect the debt have failed, and it represents one of the IRS’s final collection actions.
Key details of the CP91 Notice:
- Intent to Levy: The notice indicates that the IRS will begin garnishing 15% of the taxpayer’s Social Security benefits to apply toward the unpaid tax debt. This levy can be imposed without further warning if the taxpayer does not respond.
- Deadline for Response: Taxpayers are given a specific deadline to respond to the notice by either paying the debt, setting up a payment plan, or requesting a hearing. If no action is taken by the deadline, the IRS will proceed with the levy.
- Payment or Resolution Options: The CP91 Notice includes instructions on how to resolve the debt, including paying the full amount, establishing an installment agreement, or submitting an offer in compromise. Taxpayers can also request a Collection Due Process (CDP) hearing to appeal the levy action.
- Consequences of Levy: Once the IRS begins levying Social Security benefits, the taxpayer will receive reduced payments until the debt is paid off or other arrangements are made. This can significantly impact individuals who rely on Social Security for their primary income.
It is critical for taxpayers to take immediate action upon receiving a CP91 Notice to avoid the levy and seek a resolution that allows them to retain their Social Security benefits.