What the notice means
IRM 5.11.1.3.3.2 lists the CP90 as “Final Notice, Notice of Intent to Levy and Notice of Your Right to a Hearing, FPLP pre-levy notice.” The IRS CP90 page says the IRS intends to levy certain assets and is informing the taxpayer of the right to a collection due process hearing. Legally it does the same job as an LT11 or Letter 1058: it is an IRC 6330 notice, so a timely hearing request preserves Tax Court review.
IRM 5.11.7.3.4 says the CP90 is “mailed certified with a return receipt” and shows the balance due and the ACS phone number. It lists the appeal routes: the Collection Appeals Program, a CDP hearing, and an equivalent hearing for requests made after the 30-day period and within one year.
Why the client got it
Accounts selected for the FPLP are sent to the Bureau of the Fiscal Service (BFS), which looks for federal payments to the same TIN. When BFS finds a match, IRM 5.11.7.3.3.3 explains, Master File checks for an existing CDP notice and, “If a CDP notice was not issued, then Master File will systemically generate a FPLP CDP final notice, either the Computer Paragraph notice (CP) 90 (IMF) or 297 (BMF), prior to the levy.” The business version is the CP297.
Federal payments subject to the FPLP include, per Publication 594, federal retirement annuities from the Office of Personnel Management, Social Security benefits and federal contractor or vendor payments; IRM 5.11.7.3.3.5 also lists federal salaries, military retirement, RRB benefits and Medicare provider payments in its payment table. For joint liabilities, IRM 5.11.7.3.3.3 notes that “even if the match is only on one of the spouses, both spouses will be issued the CP 90 notice.”
Deadlines and what happens if they pass
| Clock | Rule | Source |
|---|---|---|
| Request a CDP hearing | Within 30 days of the CP90 date | IRC 6330(a); IRM 5.11.7.3.4 |
| Equivalent hearing | After 30 days and within one year of the CDP notice | IRM 5.11.7.3.4; IRM 5.1.9.3.2.2 |
| Levy on non-Social Security payments | Transmitted at least ten weeks after the CDP notice if no hearing was requested | IRM 5.11.7.3.3.4 |
| Social Security payments | CP91 issued after the CDP notice has posted at least ten weeks; levy 8 to 26 weeks after the CP91 | IRM 5.11.7.3.3.3; IRM 5.11.7.3.3.4 |
The levy amount is set by IRC 6331(h): a continuous levy that “shall attach to up to 15 percent of any specified payment due to the taxpayer.” IRM 5.11.7.3.3.5 says most FPLP levy payments are 15 percent of the payment or the balance due, whichever is less, except vendor and contractor payments, which can be levied at 100 percent. BFS sends its own notice when a payment is reduced.
How to respond
- Calendar the CP90 date plus 30 days with the CDP deadline calculator.
- Identify the matched payment. The account transcript shows the FPLP match transaction (TC 971 AC 062); IRM 5.11.7.3.3.2 says its DLN identifies the payment type and agency.
- If the client wants levy protection and court review, file Form 12153 within 30 days. The IRS CP90 page says documents can be submitted through the Document Upload Tool with the access code on the notice, or mailed to the address on the notice.
- Propose a resolution in the request: an installment agreement, currently not collectible status for hardship, or an offer in compromise. The IRS page also points to payment plans by phone.
- If the client is a federal contractor, act early. Vendor payments can be levied at 100 percent, and federal contractor levies can be served before a CDP hearing, with a post-levy CP90C (IRM 5.11.7.3.3.4).
- Keep the CAP route in mind for disputes that do not need court review. See the Collection Appeals Program.
Debtor status can follow the client beyond the IRS. IRM 5.11.7.3.3.1 notes FPLP cases sent to BFS become part of a federal debtor database shared with the System for Award Management, which flags registrants with federal debt.
What the IRS does next
If no hearing is requested, the FPLP transmits the levy to BFS. Payments then post to the account as levy proceeds (IRM 5.11.7.3.3.5). For Social Security benefits, the taxpayer first receives a CP91, which the IRS CP91 page describes as notice that the IRS intends to levy up to 15 percent of Social Security benefits; IRM 5.11.7.3.4 says it “provides an additional 30 days after the CDP notice time frame to resolve the tax liability.” The CP91 page says the Social Security Administration cannot stop the levy. With a timely hearing request, the case goes to Appeals; see CDP hearings.
Related notices
- LT11 and Letter 1058: the ACS and field CDP levy notices.
- CP504: the IRC 6331(d) notice of intent to levy.
- Letter 3172: the CDP notice after a lien filing.
Questions practitioners ask
Is a CP90 a real CDP notice?
Yes. IRM 5.11.1.3.3.2 lists it as a final notice of intent to levy and notice of the right to a hearing, and an unreversed CDP transaction from it meets the IRC 6330 requirement.
Will the client get another CDP notice before a later paper levy?
Not for the same periods. IRC 6330(a)(1) requires the notice only once for the taxable period, though new assessments need a new notice (IRM 5.11.1.3.2.1).
How much of a federal retirement payment can be taken?
Up to 15 percent of each payment under IRC 6331(h), or the balance due if less (IRM 5.11.7.3.3.5).
What is the CP91?
The FPLP notice to Social Security beneficiaries before a levy on benefits. It is issued after the CDP notice and gives an additional 30 days (IRM 5.11.7.3.4).