URGENTCOLLECTION

IRS Notice CP91: What It Means & How to Respond

IRS Notice CP91 is a critical, final demand for payment regarding a federal tax liability, specifically related to non-payment of trust fund taxes (like payroll taxes). This notice serves as the final warning before the IRS begins the process of levying (seizing) your assets, bank accounts, or wages.

Response Deadline

30 days from the date on the notice to request a Collection Due Process (CDP) hearing before the IRS begins levying your assets.

What This Notice Means

Receiving Notice CP91 means the IRS has previously sent you multiple notices about an outstanding tax debt, and they are now escalating collection efforts. This letter is legally required before the IRS can seize your property, bank accounts, or accounts receivable to satisfy the debt. Unlike earlier notices that simply requested payment, the CP91 explicitly states the IRS's intent to levy if you do not respond immediately. Because this notice often relates to trust fund recovery penalties (TFRPs), it typically targets business owners or responsible persons who failed to remit payroll taxes withheld from employee wages. The message is clear: your time to resolve the debt voluntarily is running out, and the IRS is preparing to take enforced collection action.

Why You Received This Notice

You received IRS Notice CP91 because the IRS has determined you owe a specific tax liability and have failed to pay or make arrangements after receiving prior notices (like CP504). Common scenarios include: 1) Failure to pay the Trust Fund Recovery Penalty (TFRP) assessed against a responsible party for unpaid business payroll taxes. 2) The IRS previously sent a Notice of Intent to Levy (CP504), and you did not respond or resolve the issue. 3) You defaulted on a previous payment plan (Installment Agreement) with the IRS, and they are now resuming enforced collection. 4) The debt is significant, and the IRS believes immediate action is necessary to secure payment.

What To Do Next

Immediate action is mandatory to prevent seizure of your assets. **Immediate Actions (Within 24-48 hours):** Do not ignore this notice. Verify the amount owed using the enclosed payment coupon and compare it to your records. If you agree with the balance, determine how you can pay or propose a resolution. **Short-Term Actions (Within 10 days):** Contact the IRS immediately using the phone number on the notice. If you cannot pay in full, you must propose an alternative resolution, such as an Installment Agreement or an Offer in Compromise (OIC). If you disagree with the debt, you must file a formal appeal or request a Collection Due Process (CDP) hearing. **Long-Term Considerations:** If the debt is related to business payroll taxes, consult with a tax professional experienced in TFRPs to ensure all legal defenses and resolution options are explored. Ensure all future tax filings and payments are timely to avoid further collection issues.

Consequences of Ignoring This Notice

Ignoring Notice CP91 or failing to meet the 30-day deadline will lead directly to enforced collection action. The IRS will proceed with levying your assets, which means they can legally seize funds from your bank accounts, garnish your wages, seize accounts receivable, or take ownership of physical property (like vehicles or real estate). In addition to the seizure, penalties and interest continue to accrue on the unpaid balance, significantly increasing the total debt. For business owners, the consequences can include the closure of the business and personal liability for the full amount of the Trust Fund Recovery Penalty.