HIGHAUDIT

IRS Notice CP297: What It Means & How to Respond

IRS Notice CP297 is a serious legal document known as a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. This notice indicates the IRS has determined you owe back taxes and plans to seize (levy) your assets, wages, or bank accounts if you do not respond immediately. It is the last warning before enforced collection action begins.

Response Deadline

30 days from the date on the notice to request a Collection Due Process (CDP) hearing using Form 12153. Immediate action is required to prevent levy.

What This Notice Means

Receiving Notice CP297 means the IRS has exhausted its standard collection attempts (such as CP14 and CP500 series notices) and is now preparing to take aggressive action to collect the debt. This notice is legally required before the IRS can seize property, garnish wages, or empty bank accounts. Crucially, it informs you of your right to appeal the proposed levy action through a Collection Due Process (CDP) hearing. The notice will detail the specific tax year(s) and the exact amount owed, including penalties and interest. If you agree with the debt, this notice provides a final opportunity to set up a payment arrangement. If you disagree, you must act quickly to request the CDP hearing to halt the levy process temporarily.

Why You Received This Notice

You receive Notice CP297 because the IRS believes you have an outstanding tax liability and have failed to fully resolve the debt after receiving multiple prior notices. Specific scenarios include: 1. Failure to pay taxes reported on a filed return (e.g., Form 1040 balance due). 2. Ignoring previous notices (like CP504) demanding payment. 3. Defaulting on an existing Installment Agreement (IA) or Offer in Compromise (OIC). 4. The IRS has determined your tax liability through an audit or substitute for return (SFR) process, and you have not paid the resulting balance.

What To Do Next

Immediate action is critical to prevent seizure of your assets. First, locate the attached Form 12153 (Request for a Collection Due Process or Equivalent Hearing). If you dispute the debt or need time to negotiate a resolution, complete and mail Form 12153 immediately to request a CDP hearing. This action automatically pauses (stays) the levy process. Second, if you agree you owe the money, immediately call the IRS number listed on the notice to discuss payment options, such as an Installment Agreement (Form 9465) or an Offer in Compromise (Form 656). Third, gather all relevant financial documentation (bank statements, proof of payments, prior tax returns) to prepare for negotiations or the CDP hearing. Do not ignore this notice; the IRS will proceed with collection if the deadline is missed.

Consequences of Ignoring This Notice

Ignoring Notice CP297 will lead directly to severe enforced collection actions. Once the 30-day window expires without a response, the IRS can legally proceed with a Notice of Levy. This means the IRS can seize funds from your bank accounts, garnish your wages, seize your retirement accounts, or place a federal tax lien on your property. These actions severely damage your credit rating and financial stability. Furthermore, interest and failure-to-pay penalties will continue to accrue daily on the unpaid balance, significantly increasing the total debt owed.

Related Forms
Form Form 12153
Form Form 9465
Form Form 656
Form Form 433-A

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