What This Notice Means

This is serious. A CP177 tells you the IRS intends to levy certain assets to collect unpaid taxes. It also tells you that you have the right to request a Collection Due Process (CDP) hearing.

A levy is the IRS taking your property or money to pay the debt.

What to Do

  • Pay in full if you can. That avoids more interest and penalties.
  • If you can't pay in full, look at the alternatives to full payment, such as a payment plan, and respond by the due date on your notice.
  • If you paid and the IRS didn't credit it, upload proof of payment using the Document Upload Tool with the access code printed on your notice.

Your Right to a Hearing

You can challenge the intended levy, and raise other disagreements, at a Collection Due Process hearing. Request it on Form 12153, Request for a Collection Due Process or Equivalent Hearing. File it by the due date on your notice.

A CDP hearing is one of the strongest rights you have in collection. It puts an independent Appeals officer between you and enforcement and gives you a forum to propose a resolution. Don't let the date pass.

What Happens If You Don't Respond

The IRS can levy your wages or bank accounts up to the amount owed. Property it can reach includes:

  • Wages and other income
  • Bank accounts
  • Business assets
  • Personal assets, including your car and home
  • State tax refunds and Alaska Permanent Fund Dividends
  • Social Security benefits

The IRS may also file a Notice of Federal Tax Lien. A lien is a public notice to your creditors that the government has a right to your current assets and assets you get later. It can hurt your ability to get credit.

If your debt is seriously delinquent, the State Department generally can't issue or renew your passport.

If you received a CP177 and need to stop a levy, call us at (813) 229-7100. Your hearing rights depend on acting before the date on the notice.