For most business owners, getting any form of letters or notices from the IRS can be a stressful experience. Especially if they do not have a trusted tax attorney by their side. Without a good tax attorney’s help, most IRS notices like can quickly get murky to the processes involved.
The good news is that the IRS provides taxpayers with many options to pay off their tax debts whether immediately or otherwise. Also, having a great tax attorney by your side can make the whole process run smoothly – allowing you to focus on running your business.
So, what is Notice CP297 and what should you do when you get it? We will explain everything you need to know on this page, including the best steps to take to ensure your business and property is safe from the IRS.
What is the CP297 Notice?
In simple terms, IRS Notice CP297 is a formal notification from the IRS that they can levy your assets in 30 days because you owe a tax debt. Hence why the Notice is called “Intent to Seize Your Assets and Notice of Your Right to a Hearing”.
If you receive Notice CP297, it is because all these three things happened:
- Your business owes a balance due which has not been paid.
- The IRS has proactively sent notices requesting you pay the full amount of the balance due, but did not respond.
- The IRS will then send CP297 as the final notice prior to filing a levy against your company and property for the payments due.
It is important to also note that this intent to levy means the IRS is planning to seize your property in order to offset your tax debt. The property they can seize include (but not limited to) the following:
- Money in your bank account(s)
- Payments from your clients (assuming you are a contractor)
- Wages from employers (if you are an employee)
- Cars, houses, etc.
- Commissions (on anything)
- Social security benefits
- Personal belongings
As you can see, this notice can be quite troubling for business owners. This is why it is important to contact a tax attorney for a quick consultation. Use the contact form on the right to schedule a free consultation with us.
What to Do When You Receive a Notice CP297
The natural reaction is to freak out. Do not do that. Instead, remain calm, open the IRS notice and read it. It is very important that you understand your options and the timeline for you to take action.
As we mentioned earlier, the IRS has the legal right to take your assets once they send you this notice. You have a 30-day window to respond to the notice before the agency can act. While the easiest option would be to pay, sometimes you might not have that money or it simply doesn’t make any sense.
With that said, you have three options to take when you get an IRS Notice CP297:
- You could dispute the taxes the IRS says you owe
- You could dispute the penalties (seizure of property etc.)
- Make arrangements to pay (appeal)
Which open do you go for? Only a tax attorney can help you decide. Contact us for a FREE consultation by filling out the contact form on the right.
The Risks of Ignoring an IRS CP297 Notice
Ignoring this notice is not a good idea for several reasons. Note that this notice deadline is 30 days and if you miss it, the IRS will file a Notice of Federal Tax Lien and start collecting your assets.
Don’t wait till that happens. The IRS can legally take assets and property including:
- Money in your bank account(s).
- Payments from your clients (assuming you are a contractor).
- Wages from employers (if you are an employee).
- Cars, houses, etc.
- Commissions (on anything).
- Social security benefits.
- Personal belongings.
Usually, all you are allowed to personally keep is your essentials like clothing, furnishings, and a primary vehicle. Also, if the IRS plans to levy your Social Security benefits, they can take up to 15% of your payments.
Don’t let things get out of hand. 30 days might seem like a long time, but it is not. Contact an experienced New Jersey Tax Firm today for a free consultation. Fill out the contact form on the right to get started.
Speak with a New Jersey IRS Tax Attorney about IRS Notice CP297
If you have received a CP297 Notice and have questions or would like legal advice, contact Paladini Law by calling 201-381-4472 or filling out an online form for a free consultation.
Attorney Brad Paladini has helped taxpayers across New Jersey avoid penalties and save thousands. We will review your case, help you determine if hiring an attorney makes sense, and plot a course of action to resolve your tax issue.