IRS Notice Guide

CP90 and CP297 Notices: IRS Levy on Federal Payments Explained

By Ray Neu, Publisher | Last reviewed: October 26, 2026 | Reading time: 8 min

Short answer

CP90 (individual accounts) and CP297 (business accounts) are IRS notices issued when the Federal Payment Levy Program matches an unpaid tax debt to a federal payment, such as a federal annuity, Social Security or a contractor payment. Each announces an intended levy under 26 U.S.C. § 6331(h) and a right to a Collection Due Process hearing within 30 days.

These notices come from an automated match between IRS balance due records and upcoming Treasury payments. Using the IRS notice pages, the Federal Payment Levy Program (FPLP) page, IRM 5.11.7 and the statute, this guide covers who gets which version, how much can be taken, and how hearing rights differ.

Deadline to know: The IRS FPLP page says that if it does not hear from the taxpayer “within 30 days from the date of the final notice,” the levy is sent electronically to the Treasury’s Bureau of the Fiscal Service. Section 6330(a) ties the hearing request to that same 30-day period.

Holding a CP90 or CP297? Ask what the hearing and payment rules allow.
Free, confidential evaluation.

Start Your Free Evaluation

Or call (202) 968-1121

What CP90 and CP297 are, and who gets which

Each week the IRS sends the Bureau of the Fiscal Service (BFS) a file of delinquent accounts to compare against pending federal payments. Per the FPLP page, on a match the IRS mails a “Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing, CP 90 or CP 297,” but only “if another final notice has not already been issued.”

The two IRS notice pages do not say who receives which. IRM 5.11.7 does: “CP 90 (IMF) or 297 (BMF),” meaning the Individual and Business Master Files. On a joint income tax debt both spouses get a CP 90 even if only one spouse’s payment matched, and the notices go by certified mail with a return receipt.

The related notices in the same program

Notice	Account type	When the hearing right comes
CP90 / CP297	Individual / business	Before the levy
CP91 / CP298	Individual / business	An added notice before a Social Security levy
CP90C / CP297C	Individual / business federal contractor	After the levy
CP297A	Business, employment taxes	After the levy

A CP297A follows a disqualified employment tax levy: the business or a predecessor asked for a hearing on employment taxes within the prior 2 years, so § 6330(f) lets the IRS levy first.

Which federal payments can be levied, and how much

Section 6331(h)(1) makes the levy continuous from the day it is first made until released and, “Notwithstanding section 6334,” lets it attach to “up to 15 percent of any specified payment.” Section 6331(h)(3) raises the cap to 100 percent for payments due to “a vendor of property, goods, or services sold or leased to the Federal Government” and for Medicare providers and suppliers. Payments whose eligibility turns on income or assets are excluded.

15%, per the IRM table: federal retirement annuities, federal travel payments, some federal civilian salaries, Title II Social Security, Railroad Retirement benefits (not Tier 2), military retirement, and certain miscellaneous payments.
100%: civilian and Defense contractor and vendor payments, Army Corps of Engineers and Postal Service vendor payments, and Medicare provider and supplier payments.
Not in the program: Thrift Savings Plan annuities, Supplemental Security Income, Medicaid provider payments, uniformed military salaries, and military retirement for disability and Medal of Honor recipients.

The FPLP page says BFS reduces a payment by 15 percent “or the exact amount of tax owed if it is less.” On contractor payments its wording is narrower than the statute: “Some contract/vendor payments, however, will be reduced by 100 percent.” The IRM computes the 15% on federal salaries after taxes, health premiums, retirement contributions and court-ordered child support, and lets revenue officers use a paper levy such as Form 668-W instead (see IRS wage garnishment).

Social Security benefits: an extra notice first

Section 6334(c) says nothing is exempt from levy beyond the list in § 6334(a), “including section 207 of the Social Security Act.” Title II Social Security is not among the listed items; Supplemental Security Income is, and the IRM keeps it out of the FPLP.

The FPLP page’s 30-day rule covers every leviable payment “except for certain Social Security benefits.” Per the IRM, once a hearing notice has been on the account at least ten weeks, a matched Social Security payment triggers “an additional final notice”: CP 91 for individuals or CP 298 for businesses, each stating intent to levy up to 15% of the benefit. The IRM says this notice goes by regular mail, gives “an additional 30 days,” and that the levy is sent at least 8 and no more than 26 weeks after it.

Benefits the IRM excludes: disability insurance payments, dependent child benefits, lump sum claims, and payments already partly withheld to repay an SSA overpayment.
Low Income Filter: individuals receiving Social Security, military retirement or Railroad Retirement benefits are excluded when estimated income is below 250% of the federal poverty guidelines, unless a listed condition, such as an unfiled return, applies.
Who to call: the CP91 and CP298 pages say the Social Security Administration cannot resolve the tax issue and point to the number on the notice.

Questions about a federal payment levy?

An attorney can review the notice and the hearing and payment routes the law provides.

Start Your Free Evaluation Call (202) 968-1121

The hearing window on a CP90 or CP297

A CP90 or CP297 is the § 6330 notice for the periods it lists. Section 6330(a)(1) requires that notice “only once for the taxable period,” and § 6330(b)(2) allows one hearing per period. The CP90 page tells a taxpayer who disagrees to use Form 12153, sent through the Document Upload Tool with the access code on the notice, or mailed to the notice address.

The FPLP page, Publication 594 and Publication 1660 all count the 30 days from the date of the notice or letter. The CDP FAQ counts from receipt, but it addresses the LT11 rather than this notice. Separately, the IRM says a non-Social Security levy is transmitted “at least ten (10) weeks” after a CP 90 or 297 with no hearing request, a processing rule rather than a longer deadline.

Timely CDP request. Under § 6330(e)(1), the levy actions under review and the collection period in § 6502 are suspended while the hearing and appeals are pending. Section 6330(d)(1) allows a Tax Court petition within 30 days of the determination.
Equivalent hearing. Per the IRM and Publication 1660, available after the 30-day period and within one year of the notice date.
Collection Appeals Program. Also listed in the IRM; Publication 1660 says a CAP decision cannot be taken to court.

Federal contractors: CP90C and CP297C come after the levy

Section 6330(f)(4) moves the hearing to after the levy when “the Secretary has served a Federal contractor levy,” provided the taxpayer gets the hearing “within a reasonable period of time after the levy.” Section 6330(h)(2) defines that as any levy on a person, or a predecessor, who is a federal contractor.

The CP297C page puts it plainly: “Federal contractors do not have the right to a pre-levy hearing.” The IRM adds limits: contractor levies skip Social Security and Railroad Retirement benefits and married filing joint accounts, and the IRM says they come after a CP 504, which meets the § 6331(d) notice rule. The post-levy notice, sent certified, keeps the same appeal right as a CP 90 or 297.

How these notices fit with CP504 and LT11

A CP504 is the IRS Notice of Intent to Levy under § 6331(d); the CDP FAQ says the hearing notice is “the next step after this notice.” A CP90 or CP297 is such a hearing notice. The LT11 and Letter 1058 are too, coming from the Automated Collection System or field collection rather than from the FPLP match (see the LT11 and Letter 1058 guide).

The IRM says an FPLP levy can follow a CP 90 or 297 “or after any other CDP notice, such as the ACS LT 11 or field collection L1058,” so someone who already had an LT11 for a period may never see a CP90 for it. A hearing notice older than 180 days need not be repeated before the match produces a levy. All notices are listed on the IRS notices hub.

What keeps an account out of the program

The FPLP page leaves payments out during bankruptcy, after an innocent or injured spouse application, when the taxpayer has “made alternative arrangements to pay,” or after a hardship finding. The IRM list adds pending or approved installment agreements and offers, disaster and combat zones, and accounts near the collection statute expiration date; an account entering one of these drops out automatically.

Publication 594 says the IRS “can’t issue a new levy” during a current or pending payment plan or offer, or once it agrees a levy would leave the taxpayer unable to meet basic living expenses. Otherwise, the FPLP page says, the levy runs until the debt is paid or other arrangements are made, BFS sends a letter each time a payment is reduced, and questions go to the IRS, not BFS, OPM or SSA. See installment agreements and currently not collectible status.

When an attorney matters

The CP90 page points to Form 2848 for authorizing a representative. Publication 594 lets an attorney, a certified public accountant or an enrolled agent act during collection, and Publication 1660 says the same for CDP and CAP hearings. The roles differ in two places:

Tax Court. A CDP determination can be petitioned to the Tax Court under § 6330(d)(1). The Court admits attorneys by application; a nonattorney must meet the requirements in its Rules, which include an examination.
Privilege. Section 7525 gives communications with CPAs and enrolled agents attorney-like confidentiality only in noncriminal tax matters.

More on the roles: tax attorney vs CPA vs enrolled agent.

Related guides

Frequently Asked Questions

What is the difference between a CP90 and a CP297?

IRM 5.11.7 says the program sends CP 90 on Individual Master File accounts and CP 297 on Business Master File accounts. Both carry the same pre-levy hearing right. The IRS pages for the two notices do not explain the split.

How long do I have to respond to a CP90?

The IRS Federal Payment Levy Program page says the levy is sent to Treasury if the IRS does not hear back within 30 days from the date of the final notice. Publication 594 also counts from the date of the letter, so the date printed on the notice is the reference point.

Can the IRS take my Social Security after a CP90?

Title II benefits can be levied, but the IRM describes a further notice first: CP 91 for individuals or CP 298 for businesses, stating intent to levy up to 15% of the benefit. The levy goes out at least 8 and no more than 26 weeks after that notice.

Why did I get a CP90C after the money was already taken?

Section 6330(f)(4) lets the IRS serve a federal contractor levy before offering a hearing, as long as a hearing is offered within a reasonable time afterward. The CP90C or CP297C is that post-levy notice, and it carries the same hearing right as a CP90.

Is a CP90 the same as an LT11?

Both are hearing notices under § 6330, and the IRM treats either one as the notice that allows a federal payment levy. The FPLP page says a CP 90 or CP 297 goes out only if another final notice has not already been issued.

Talk through a CP90 or CP297

A free, confidential evaluation can review the notice date and the options federal law recognizes.

Start Your Free Evaluation Call (202) 968-1121

About the Author

Ray Neu

Ray Neu is the publisher of IRSAttorneys.net. A former law enforcement officer with a background in criminal justice and digital publishing, he oversees editorial direction, partnership standards, and compliance review for the site. He is not an attorney and does not provide legal advice; all tax law content is sourced and reviewed against the standards documented on the Editorial Team & Standards page.

LinkedIn Profile →

Sources

IRS Circular 230 Disclosure: To ensure compliance with Treasury Department rules governing tax practice, any tax information contained on this website was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty. You should consult a licensed tax professional regarding your individual situation.

Results described on this website are not a guarantee, warranty, or prediction of the outcome of any tax matter. Every situation is different. Prior results do not guarantee a similar outcome. Article content reflects general information about federal tax procedure as of the last reviewed date and may not reflect subsequent changes in IRS policy, regulations, or case law.