CP 91/CP 298 - Final Notice Before Levy on Social Security Benefits - Z Tax & Accounting

Receiving IRS Notice CP91 or CP298 is a serious matter because it means the IRS intends to levy or garnish a portion of your Social Security benefits to collect unpaid taxes. At Z Tax & Accounting, we help taxpayers stop IRS levy actions, resolve tax debt issues, and protect their rights through professional IRS representation.

IRS Notices CP91 and CP298 are collection enforcement notices and should not be ignored.

What Is IRS Notice CP91 or CP298?

IRS Notice CP91 or CP298 informs taxpayers that the IRS intends to levy up to 15% of certain Social Security benefits to satisfy unpaid tax debt.

The notice generally means:

• The taxpayer has an outstanding IRS balance due

• Previous IRS notices were sent

• The balance remains unpaid

• The IRS plans to begin levying Social Security benefits

The notice also explains the taxpayer’s rights and available options to stop the levy action.

Why Did the IRS Send CP91 or CP298?

The IRS may issue these notices after:

• Taxes remain unpaid

• Prior collection notices were ignored

• Payment arrangements were not established

• Existing payment agreements defaulted

The IRS generally sends multiple notices before initiating levy action against Social Security benefits.

How Much of Social Security Benefits Can the IRS Levy?

Under the Federal Payment Levy Program (FPLP), the IRS may generally levy up to 15% of certain Social Security benefits.

The levy may apply to:

• Social Security retirement benefits

• Social Security disability benefits

• Certain federal payments

The levy continues until:

• The balance is paid

• The levy is released

• Alternative arrangements are approved

Important 30-Day Deadline

IRS Notices CP91 and CP298 generally provide taxpayers approximately 30 days from the notice date to take action before the levy begins.

During this period, taxpayers may:

• Pay the balance due

• Request an installment agreement

• Submit an Offer in Compromise

• Request Currently Not Collectible status

• Appeal the collection action

Responding before the deadline may help prevent levy enforcement.

What Happens If You Ignore CP91 or CP298?

Ignoring the notice may result in:

• Ongoing Social Security benefit levies

• Continued penalties and interest

• Additional IRS collection actions

• Federal tax liens

• Bank levies or wage garnishments in some situations

Once the levy begins, the IRS may continue collecting automatically from future benefit payments.

Available IRS Tax Resolution Options

Taxpayers receiving CP91 or CP298 may still qualify for several IRS resolution options.

IRS Installment Agreements

Monthly payment plans may help stop levy actions if approved by the IRS.

Offer in Compromise (OIC)

Qualified taxpayers may be able to settle tax debt for less than the full amount owed.

Currently Not Collectible (CNC) Status

Taxpayers experiencing financial hardship may qualify for temporary suspension of collection activity.

Penalty Abatement

Certain penalties may potentially be reduced or removed under qualifying circumstances.

Professional evaluation may help determine the best resolution strategy.

Collection Appeal Rights

Taxpayers may also have rights to appeal IRS collection actions.

Possible appeal options may include:

• Collection Due Process hearings

• Collection Appeals Program requests

• Levy release requests

• Hardship-based appeals

Prompt response is important to preserve these rights.

What Should You Do After Receiving CP91 or CP298?

If you receive IRS Notice CP91 or CP298, you should:

• Carefully review the notice

• Verify the balance due

• Gather prior IRS correspondence

• Review your financial situation

• Respond before the 30-day deadline

• Consider professional representation immediately

Early action may help stop the levy before Social Security benefits are reduced.

Professional IRS Levy Defense and Tax Resolution Services

At Z Tax & Accounting, we assist taxpayers with:

• IRS Notices CP91 and CP298

• Social Security levy release requests

• IRS installment agreements

• Offer in Compromise negotiations

• Currently Not Collectible status requests

• IRS appeals and levy defense

• Tax debt resolution

• Federal tax lien issues

• IRS collections defense

• Back tax filings and compliance

Our experienced IRS Enrolled Agents are admitted to practice before the IRS and provide professional representation for taxpayers nationwide.

Contact Z Tax & Accounting Today

If you received IRS Notice CP91 or CP298 or are facing an IRS levy against your Social Security benefits,  contact Z Tax & Accounting immediately.

We help taxpayers stop IRS collection actions, protect their financial interests, and resolve complex tax matters with professionalism and confidence.

Call us today at (214) 699-4790 for professional IRS levy defense and tax resolution assistance.