NOTICE CP92

IRS Notice CP92, also known as “Notice of Levy,” is a notice sent by the Internal Revenue Service (IRS) to a taxpayer to inform them that their state tax refund has been seized to pay for delinquent federal taxes. The IRS can levy a taxpayer’s state tax refund if they have seriously delinquent tax debt, meaning they owe more than $5,000 in taxes and have not paid them for more than 60 days.

Reasons why it happened:

• You have a tax balance that was not paid by the due date.
• The IRS sent multiple notices requesting your payment, but never received payment.
• The IRS seized your state tax refund and applied your state tax refund to your unpaid liabilities.

• Pay your tax debt in full. This is the best way to resolve the issue and avoid further collection action from the IRS.
• Set up a payment plan. If you cannot pay your tax debt in full immediately, you can set up a payment plan with the IRS. This will allow you to pay your debt over time in monthly installments.
• Request a Collection Due Process (CDP) hearing. If you believe that the IRS has levied your state tax refund in error, you can request a CDP hearing. This is a formal process where you can present your case to an IRS appeals officer.

How to avoid it in the future

The best way to avoid receiving IRS Notice CP92 is to file your taxes on time and pay your taxes in full. If you are unable to pay your taxes in full, you should contact the IRS to discuss your options. The IRS is willing to work with taxpayers who are having difficulty paying their taxes.