The first move
Find the date on the letter and count 30 days. If the letter mentions a Collection Due Process hearing, that window is a legal right and it does not reopen.
What these letters have in common
By the time a collection letter arrives, the balance has been through the reminder series. The final notice before a levy on wages or bank accounts is an LT11 or Letter 1058. A CP90 or CP297 is the same notice for different account types. A CP504 comes before them and only reaches your state refund. Letter 3172 tells you a federal tax lien has been filed publicly.
Each of these gives you 30 days to file Form 12153 and get an independent appeals review, during which collection is paused. In that hearing you can propose an installment agreement, an offer in compromise, or currently-not-collectible status, and you can challenge the amount if you never had a chance to before. Miss the 30 days and you get an equivalent hearing without the pause and without Tax Court review.
A CP91 or CP298 means the IRS intends to take up to 15 percent of Social Security benefits. A CP40 means the account was assigned to a private collection agency, which cannot levy but will call.
What to gather
- Every collection letter in order, with dates
- The balance the IRS shows and your own records of it
- A monthly budget: income, necessary expenses, assets, in case you propose a plan
- Form 12153 if a hearing right is mentioned
- Any prior payment plan paperwork
How to write back
- Payment plan request cover letter: A cover letter to accompany Form 9465 or an online payment plan confirmation, stating the balance, the proposed monthly amount, and the first payment date.
Notices in this family
| Notice | What it means |
|---|---|
| CP40 | Your account was assigned to a private collection agency |
| CP77 | Notice of intent to seize assets and your right to a hearing (Alaska Permanent Fund dividend) |
| CP90 | Final notice of intent to levy and your right to a hearing |
| CP90C | Notice that a levy was issued, with hearing rights |
| CP91 | Final notice of intent to levy up to 15 percent of Social Security benefits |
| CP92 | Notice of levy on your state tax refund and your right to a hearing |
| CP94 | Levy notice tied to a criminal restitution assessment |
| CP177 | Business: final notice of intent to levy and hearing rights |
| CP242 | Business: notice of levy on your state tax refund |
| CP297 | Business: final notice of intent to levy and hearing rights |
| CP297A | Business: notice that a levy was issued |
| CP297C | Business: notice of levy with hearing rights |
| CP298 | Business: intent to levy Social Security benefits |
| CP740 | Levy-related notice for specific account types |
| LT11 | Final notice of intent to levy and your right to a Collection Due Process hearing |
| Letter 1058 | Same as LT11, issued by a revenue officer |
| Letter 3172 | Notice of federal tax lien filing and your right to a hearing |
When to get help
This is the family where a licensed representative earns the fee. If the letter is an LT11, Letter 1058, CP90, or CP297, get help inside the 30 days.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.