CP297 Notice
The CP297 is an IRS notice informing you that the IRS intends to levy (seize) your property or assets to satisfy an unpaid tax debt. This notice also informs you of your right to request a Collection Due Process (CDP) hearing before the levy takes effect.
Why Did You Receive This Notice?
You received a CP297 because you have an unpaid tax balance and the IRS has completed its standard collection sequence — typically CP14, CP501, CP503, and CP504 — without receiving payment or a response. The IRS is now serving formal legal notice that it will use levy authority to seize property, wages, bank accounts, or other assets unless you take action.
What Does this Mean for You?
The CP297 is a serious legal notice. It means the IRS has the legal right to levy your assets and intends to do so. Assets that can be levied include wages, bank accounts, retirement accounts, business receivables, real property, and more. The notice also informs you of your right to request a Collection Due Process hearing, which temporarily stops levy action while the hearing is pending.
What Happens If You Ignore It?
Your Options
- Request a Collection Due Process hearing: You have the right to request a CDP hearing, which temporarily halts the levy. This must be done within 30 days of the notice date. A CDP hearing allows you to raise issues such as the appropriateness of the levy, alternative payment arrangements, or challenges to the underlying debt.
- Pay in full: Paying the full balance immediately stops all levy action.
- Set up a payment plan: An approved installment agreement stops levy action and gives you time to pay.
- Apply for an Offer in Compromise: If you cannot pay the full balance, an OIC lets you settle for less.
- Request Currently Not Collectible status: If levying would create genuine financial hardship, you can request CNC status to temporarily pause collection.
Step-By-Step: What To Do Next
Step 1: Read the CP297 immediately and note the response deadline — the 30-day CDP hearing window is critical.
Step 2: Determine which resolution option fits your situation: pay in full, payment plan, CDP hearing, OIC, or hardship request.
Step 3: If requesting a CDP hearing, file IRS Form 12153 by the deadline.
Step 4: If setting up a payment plan, apply immediately at irs.gov or call the IRS.
Step 5: Confirm in writing that your chosen resolution has been acknowledged by the IRS before the levy date.Step 6: Do not delay — every day matters with a CP297.
Can You Handle this Yourself?
If you want to set up a simple payment plan to stop the levy, you can do this yourself through irs.gov or by calling the IRS. If you want to challenge the levy through a CDP hearing, or explore an Offer in Compromise, professional assistance is strongly recommended — these are legal proceedings with specific procedural requirements.
Expert Insight From Rockwater Tax
At Rockwater Tax, the CP297 is the notice that tells us the IRS is done waiting. At this stage, the priority is stopping the levy before it executes — often before the client can pay anything — because a bank levy or wage garnishment creates cascading financial problems. The CDP hearing request is a powerful tool that most taxpayers don't know about, and it buys critical time to negotiate a proper resolution.
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FAQ
Q: What is a Collection Due Process hearing?
A: A CDP hearing is a formal administrative hearing where you can challenge the IRS's intent to levy, propose alternatives such as a payment plan or OIC, or dispute the underlying debt. Requesting it stops levy action while the hearing is pending.
Q: How quickly can the IRS levy my bank account after a CP297?
A: The IRS must wait 30 days after the CP297 before levying. After that, it can levy immediately — often the day after the 30-day window closes.
Q: Can I stop the levy by making a partial payment?
A: A partial payment alone does not stop a levy. You need a formal agreement — an installment agreement, OIC, or approved CNC status.
