IRS Notice CP90 — Final Notice of Intent to Levy and Right to Hearing

What is IRS CP90?

IRS CP90 is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing — functionally identical to Notice 1058 and LT11. The CP90 is typically issued by the IRS Automated Collection System (ACS) for individual taxpayers, while LT11 is issued by Revenue Officers. All three notices trigger the same Collection Due Process (CDP) rights under IRC §6330 and the same 30-day deadline to request a CDP hearing.

Critical: The 30-day deadline runs from the notice date, not the date received. If a client brings you a CP90 that is already 25 days old, you have 5 days to file Form 12153. Treat this as an emergency.

CP90 vs. LT11 vs. Notice 1058

What Happens After CP90?

If the taxpayer does not respond within 30 days, the IRS can immediately begin levy action against:

• Bank accounts (immediate freeze and seizure of funds)
• Wages (continuous levy — employer must withhold and remit to IRS)
• Social Security benefits (15% continuous levy)
• Accounts receivable and business assets
• Retirement accounts (IRA, 401(k))

Requesting a CDP Hearing — Form 12153

File Form 12153 (Request for a Collection Due Process or Equivalent Hearing) within 30 days of the CP90 date. The form must be mailed to the address shown on the notice via certified mail. Key points:

• Check the box for "CDP Hearing" (not "Equivalent Hearing") to preserve Tax Court appeal rights
• Indicate the collection alternative you are requesting (installment agreement, OIC, CNC, penalty abatement)
• The levy is automatically suspended while the CDP hearing is pending
• The CDP hearing is conducted by an independent IRS Appeals Officer

Collection Alternatives to Present at CDP Hearing

The CDP hearing is the opportunity to present collection alternatives. Come prepared with:

• Form 433-A: Collection Information Statement for individuals (required for installment agreements over $50,000 and all OIC submissions)
• Installment agreement proposal: Monthly payment amount based on disposable income calculation
• OIC package: If doubt as to collectibility exists (reasonable collection potential below the tax liability)
• CNC documentation: If client has no ability to pay (hardship cases)
• Penalty abatement request: If first-time penalty abatement or reasonable cause applies

Immediate Action Steps for Practitioners

1. Calculate the exact CDP deadline (notice date + 30 days)
2. Pull IRS transcripts to understand the full balance and collection history
3. File Form 12153 immediately — even before the collection alternative is fully prepared
4. Prepare Form 433-A with supporting documentation
5. Determine the best collection alternative based on client's financial situation
6. Contact ACS to confirm levy is suspended pending CDP hearing

What is IRS CP90?

IRS CP90 is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. It is one of the most serious IRS collection notices — along with LT11 and Notice 1058, it triggers the taxpayer's Collection Due Process (CDP) rights under §6330. Upon receiving a CP90, the taxpayer has 30 days to request a CDP hearing with the IRS Office of Appeals. If no hearing is requested within 30 days, the IRS can proceed with levy action — seizing wages, bank accounts, Social Security benefits, retirement accounts, and other assets.

Critical deadline: The 30-day CDP request deadline is absolute. Missing it eliminates the taxpayer's right to a pre-levy CDP hearing (though an "equivalent hearing" may still be available). This is the most time-sensitive notice in the IRS collection process.

CP90 vs. LT11 vs. Notice 1058

The IRS uses three different notices to satisfy the CDP notice requirement, depending on the taxpayer's situation:

All three notices have identical legal effect — they are all "Final Notice of Intent to Levy" notices that trigger CDP rights. The different notice numbers reflect different IRS systems and taxpayer categories, but the response strategy is the same for all three.

What CDP Rights Mean for Your Client

A timely CDP hearing request (Form 12153) does three things:

1. Stops all levy action while the CDP case is pending — the IRS cannot seize assets while a CDP hearing is in process
2. Provides access to the IRS Office of Appeals — an independent review of the collection action
3. Preserves the right to petition Tax Court — if the taxpayer disagrees with the Appeals determination, they can petition the U.S. Tax Court for judicial review

The CDP hearing is one of the most powerful tools in tax resolution — it stops collection action and opens the door to collection alternatives (installment agreements, Offers in Compromise, Currently Not Collectible status) that may not have been available through normal channels.

Filing Form 12153 — Request for CDP Hearing

Form 12153 (Request for a Collection Due Process or Equivalent Hearing) must be filed within 30 days of the CP90 date. Key requirements:

• Must be filed with the IRS address shown on the CP90 notice
• Must identify the tax period(s) and type of tax at issue
• Must state the specific issues the taxpayer wants to raise at the hearing
• Can be filed by the taxpayer or their authorized representative (with Form 2848 Power of Attorney)

What to raise at the CDP hearing:

• Collection alternatives (installment agreement, OIC, CNC)
• Spousal defenses (innocent spouse, separation of liability)
• Challenges to the underlying liability (if the taxpayer never had a prior opportunity to dispute it)
• Procedural defects in the IRS's collection process

What Happens if the 30-Day Deadline is Missed

If the taxpayer misses the 30-day CDP deadline, they can still request an "equivalent hearing" within one year of the CP90 date. An equivalent hearing provides the same access to Appeals and the same collection alternatives — but does NOT stop levy action and does NOT preserve the right to petition Tax Court. For clients who have missed the CDP deadline, the equivalent hearing is still valuable but the urgency of stopping levy action is gone.

Levy Exemptions

Even after the CDP period expires, certain assets are exempt from IRS levy:

• Unemployment benefits
• Certain disability payments
• Workers' compensation
• Minimum exempt amount of wages (based on filing status and dependents)
• Certain pension and annuity payments (partial exemption)
• Principal residence (requires court order for seizure)

Practitioner Strategy for CP90 Clients

1. File Form 12153 immediately — do not wait. The 30-day deadline is absolute and filing stops all levy action.
2. Pull IRS transcripts — verify the balance, identify any credits or payments not applied, and check for statute of limitations issues (CSED — Collection Statute Expiration Date).
3. Determine the best collection alternative — installment agreement, OIC, CNC, or penalty abatement.
4. File Form 2848 (Power of Attorney) to represent the client before Appeals.
5. Prepare the collection information statement (Form 433-A or 433-B) if a collection alternative requires financial disclosure.

IRS Notice CP90: Final Notice of Intent to Levy — Complete Response Guide

IRS Notice CP90 is one of the most serious notices the IRS sends. It is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing — the last warning before the IRS begins seizing assets, garnishing wages, levying bank accounts, or filing a federal tax lien. Practitioners who receive this notice for a client must act immediately.

What CP90 Means: The Legal Significance

Under IRC §6330, the IRS must provide at least 30 days' notice before levying on a taxpayer's property. CP90 is that notice. It triggers the taxpayer's right to request a Collection Due Process (CDP) hearing with the IRS Office of Appeals — but only if the request is made within 30 days of the date on the notice.

Missing the 30-day CDP deadline is catastrophic. After the deadline passes, the IRS can begin levying immediately. The taxpayer loses the right to a CDP hearing (though they may still request an "equivalent hearing" within one year, which does not suspend collection). The CDP hearing is the most powerful tool available to stop an IRS levy, so protecting this right is the practitioner's first priority.

Immediate Actions Required Upon Receiving CP90

Day 1: Verify the date on the notice and calculate the 30-day deadline. File Form 12153 (Request for a Collection Due Process or Equivalent Hearing) immediately if there is any dispute about the liability or if collection alternatives (installment agreement, offer in compromise, currently not collectible status) are available.

Within 48 hours: Pull the client's IRS transcript to understand the full scope of the liability. Check for any prior CDP hearings (a taxpayer can only have one CDP hearing per tax period per type of levy notice). Determine whether the underlying liability is correct or whether there are grounds to challenge it.

Before the CDP deadline: File Form 12153 even if the collection alternative strategy is not fully developed. Filing the request stops the levy and buys time to negotiate. The CDP hearing request must be received by the IRS (not just postmarked) within 30 days — send via certified mail with return receipt and keep the receipt.

Collection Alternatives Available at CDP Hearing

The CDP hearing is not just a procedural right — it is a negotiating opportunity. At the hearing, the taxpayer (through their representative) can propose any of the following collection alternatives:

Installment Agreement (IA): Monthly payment plan. For liabilities under $50,000, a Streamlined IA can be set up without full financial disclosure. For larger liabilities, a Collection Information Statement (Form 433-A or 433-B) is required.

Offer in Compromise (OIC): Settlement of the tax debt for less than the full amount owed. The IRS accepts OICs when the offered amount equals or exceeds the taxpayer's "reasonable collection potential" (RCP) — the present value of assets plus future income available for collection. The OIC application (Form 656) requires a $205 application fee and a 20% non-refundable payment of the offered amount (for lump-sum offers).

Currently Not Collectible (CNC): If the taxpayer has no ability to pay (income equals or is less than allowable living expenses), the IRS can place the account in CNC status, suspending collection activity. The liability continues to accrue interest and penalties, and the IRS reviews CNC status periodically.

Innocent Spouse Relief: If the liability arises from a joint return and the requesting spouse did not know about the understatement, innocent spouse relief under IRC §6015 may be available.

What Happens If You Miss the CDP Deadline

If the 30-day deadline passes without a CDP request, the IRS can begin levying immediately. However, practitioners still have options: (1) Request an equivalent hearing within one year — this does not suspend collection but allows the taxpayer to present collection alternatives to Appeals. (2) Request a Collection Appeals Program (CAP) hearing for certain levy actions. (3) Negotiate directly with the Revenue Officer assigned to the case. (4) File for bankruptcy — an automatic stay under 11 U.S.C. §362 immediately stops all IRS collection activity, including levies. (5) Request a levy release under IRC §6343 if the levy creates an economic hardship.