This requires urgency: if you receive an IRS Letter CP-90, rest assured it is one with a form 2290 attached. This notice serves as an advanced notice for an intent to levy (seize) is directed towards your assets to pay for Heavy Vehicle Use Tax (HVUT) that is unpaid. Not addressing this issue can translate to serious repercussions at a financial level. In this article, we’ll explain the meaning of the CP-90 Letter, the reasons for receiving it, and the steps needed towards resolving it.

What Is IRS Letter CP-90?

Final Notice of intent to levy along with Right to a Hearing - IRS Letter CP-90, is posted after the tax department of the IRS persists in reaching out for the payment of tax debt, however, payment is not forthcoming. This letter hints towards the possibility of the IRS making an attempt to pay off the owed tax liability through the seizure of certain assets such as bank accounts, property, or even wages.

What Could Be The Reason Behind Receiving The CP-90 Letter From Form 2290?

There are a few reasons why the IRS would issue a CP-90 letter fully qualified relevant to Form 2290. These are:

• Outstanding HVUT: You have not paid the Heavy Vehicle Use Tax for one or more taxable periods.
• Not Complied With Missed Payments: If a system was established for a payment plan and payments were missed, it’s likely the IRS would levy.
• An Untimely Response to the Notices: The IRS usually sends out numerous reminders before they issue a CP-90 notice.
• Filing Form 2290 Incorrectly and Not Paying the Tax: There was a mistake in filing and the IRS considers that tax unpaid because there was no submission of the form.

What Would Happen If The CP-90 Notice Gets Ignored?

Not responding to the CP-90 notice entitles the IRS to take the following legal actions against you:

• Withdraw Money From Bank Accounts: The IRS is allowed to get money from the bank account to offset certain tax obligations.
• Put a Hold On Your Salary: They can order your employer to stop paying you some of your salary.
• Take Over Business and Personal Properties: For instance, such property may be vehicles, equipment, or other items.
• Hinder The Renewal of Vehicle Registration: If you haven’t paid the HVUT, the IRS might alert the DMV, which could lead to challenges when trying to renew your trucks registration.

How to Handle Notice of IRS Letter CP-90

Upon receiving a CP-90 notice, swift action is needed to mitigate any enforcement measures.  Here are the subsequent steps to take:

• Pay Attention to The Details: Examine the letter concerning the tax duration, the total amount owed, and as well as the time frame in which one needs to respond. You need to confirm that the IRS has the correct records of your tax liability.
• Filing Form 12153 to Hearings Requests: Your CP-90 letter states an opportunity to request a hearing. To appeal to the IRS regarding the actions taken towards you, Complete and submit Form 12153 requesting for a CDP hearing within 30 days of receiving the IRS notice.
• Pay The Tax Owed (If You Can): If you need to halt the IRS from taking legal actions, paying the total amount owed is the quickest and most effective way of doing so. Indications are made that you can remit funds online through the IRS site, by post, or using EFTPS.
• Payment Plans Available: In such cases where a full payment cannot be made, one qualifies for an installment agreement or offer in compromise thereby allowing him/her to significantly pay a reduced total to offset the debt.
• Challenge the Claim (If Applicable): If you think the IRS has made a mistake, you need to prepare the appropriate documents and challenge them. You might also seek help with your tax professional.
• Involve an Expert: Other than preparing taxes with the support of CPAs and tax lawyers, you can also deal with IRS collection, settlement negotiations, and appeals.

How to Avoid Getting IRS CP-90 Notices in the Future

In case you do not want to receive a CP-90 letter again, here is a list of recommendations you should take into account:

• Complete Form 2290 Submissions on Time : To avoid charges and interests, complete and file your HVUT return on or before the deadline.
• Make Payments on Schedule : Full payment of your tax liability should always be done on time, or at the very least have a payment plan in place to avoid defaulting.
• Document All Payments Made to the IRS : Proof of payments made and correspondence received from the IRS should always be kept.
• Keep an Eye on IRS Notices : Reply as soon as possible to any IRS correspondence regarding your tax obligations.

If you've received an IRS Letter CP-90 related to Form 2290, this is a serious issue that ought not to be ignored.

A professional's intervention in the responding process will help you resolve the issue while avoiding a plethora of complications. For that purpose alone, a tax expert who focuses on the trucking sector as well as HVUT tax issues will serve your needs perfectly when dealing with CP-90.

It's paramount to ensure adherence to Form 2290 filing and payment deadlines because doing so will ensure that your trucking company runs successfully without any legal issues with IRS popping up.

Note: For more information, visit IRS website