IRS CP297: what it means and what to do

What this notice means

The IRS says a CP297 notifies you of its intent to levy certain assets for unpaid taxes and of your right to a Collection Due Process hearing.

“We are notifying you of our intent to levy certain assets for unpaid taxes. You have the right to a Collection Due Process hearing.”
IRS, Understanding Your CP297 Notice

Why you got it

The IRS says it sends a CP90 or CP297 final notice when its Federal Payment Levy Program matches your delinquent account against federal payments you are due.

“As part of this program, a file of delinquent accounts is transmitted to BFS to be matched against pending federal payments you are due. When a match is found, we send you a Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing, CP 90 or CP 297, if another final notice has not already been issued.”
IRS, Federal Payment Levy Program

What to do

The IRS says to read the notice, pay what you owe, and request a payment plan if you cannot pay in full.

“Read your notice carefully. It explains our actions. Pay what you owe. Request a payment plan, if you can’t pay the full amount you owe.”
IRS, Understanding Your CP297 Notice

How to respond

The IRS says to call 800-829-7650 or 800-829-3903 to pay, set up an installment agreement or propose an offer in compromise, and not to contact BFS, OPM, SSA or other agencies.

“Contact us toll-free at 800-829-7650 or 800-829-3903 to resolve the issue by paying the tax bill, entering into an installment agreement, or proposing an Offer in Compromise. Please do not contact the BFS, OPM, SSA, or any other federal agency.”
IRS, Federal Payment Levy Program

What you will need

The IRS says that for Appeals to consider collection alternatives you should include a financial statement (Form 433-A and/or 433-B) with your hearing request.

“To consider collection alternatives, Appeals will also need for you to provide a financial statement, so include Form 433-A, Collection Information Statement for Wage Earners and Self-Employed Individuals PDF and/or Form 433-B, Collection Information Statement for Businesses PDF, as needed.”
IRS, Collection due process (CDP) FAQs

Your deadline

IRS Publication 594 says you can request a Collection Due Process hearing within 30 days from the date of your Notice of Intent to Levy and Notice of Your Right to a Hearing.

“You can request a Collection Due Process hearing within 30 days from the date of your Notice of Intent to Levy and Notice of Your Right to a Hearing. Send your request to the address on your notice.”
IRS, Publication 594, The IRS Collection Process

If you disagree

The IRS says to request a Collection Due Process hearing on Form 12153, where you can appeal the intent to levy and other disagreements.

“Request a Collection Due Process hearing on Form 12153, Request for a Collection Due Process or Equivalent Hearing PDF. Why should I request a Collection Due Process hearing? You can appeal the intent to levy and other disagreements you have at a Collection Due Process hearing.”
IRS, Understanding Your CP297 Notice

If you can’t pay

The IRS says you can apply online for a payment plan, and you may also be subject to passport restrictions for seriously delinquent tax debt.

“You can apply online for a payment plan (including installment agreements). You may also be subject to the Fixing America’s Surface Transportation (FAST) Act legislation, which generally prohibits the State Department from issuing or renewing a passport to a taxpayer with seriously delinquent tax debt.”
IRS, Understanding Your CP297 Notice

A related right

The IRS says that in a Collection Due Process hearing you can dispute the existence or amount of what you owe only in very limited circumstances.

“However, as explained in Publication 1660, in a CDP hearing with Appeals, you can only discuss the existence of or amount that you owe under very limited circumstances.”
IRS, Collection due process (CDP) FAQs

More from the IRS on this notice

The IRS says that if it does not hear from you within 30 days from the date of the final notice, it will send the levy electronically to the Bureau of the Fiscal Service.

“If we don't hear from you within 30 days from the date of the final notice, we will transmit the levy electronically to BFS. This applies to all federal payments that can be levied except for certain Social Security benefits.”
IRS, Federal Payment Levy Program

The IRS says payments that can be levied this way include federal retirement annuities, federal contractor/vendor payments, federal travel advances, certain Social Security benefits and some federal salaries.

“Federal employee retirement annuities, Federal payments made to you as a contractor/vendor doing business with the government (including Defense contracts), Federal employee travel advances or reimbursements, Certain Social Security benefits paid to you, Some federal salaries,”
IRS, Federal Payment Levy Program

The IRS says the Bureau of the Fiscal Service may generally reduce each levied federal payment by 15 percent, or by the exact tax owed if that is less.

“From that point on, BFS may reduce any federal payments subject to the levy by 15 percent, or the exact amount of tax owed if it is less than 15 percent of the payment.”
IRS, Federal Payment Levy Program

The IRS says federal payments are excluded from the program if you are in bankruptcy, have applied for innocent or injured spouse relief, have arranged to pay, or are in IRS-determined hardship.

“Federal payments to a delinquent taxpayer will not be included in the program in certain circumstances. These circumstances include, when you are in bankruptcy, have applied for relief as an innocent or injured spouse, made alternative arrangements to pay, or the IRS has determined you are in a hardship situation.”
IRS, Federal Payment Levy Program

Before you reply

1. Compare the notice with your own records for the tax year it names.
2. Note the date on the notice and the response date it gives.
3. Answer by the method and address the notice gives; keep a copy of everything you send.
4. If the notice could be fraudulent, contact the IRS through the phone number or address on IRS.gov, not one printed on a suspicious letter.

Common questions

How long do I have to respond to an IRS CP297?

IRS Publication 594 says you can request a Collection Due Process hearing within 30 days from the date of your Notice of Intent to Levy and Notice of Your Right to a Hearing.

What if I disagree with the CP297?

The IRS says to request a Collection Due Process hearing on Form 12153, where you can appeal the intent to levy and other disagreements.