The CP297A is a variant of the CP297 specifically addressing trust fund employment taxes. It notifies your business of the IRS's intent to levy for unpaid trust fund taxes and provides Collection Due Process hearing rights. You have 30 days to request a CDP hearing.
Why Trust Fund Taxes Get Special Treatment
Trust fund taxes are money withheld from employees' paychecks — federal income tax and the employee share of FICA. This money belongs to the government from the moment it's withheld. When a business fails to deposit trust fund taxes, the IRS considers it among the most serious tax violations. Collection is aggressive, penalties are severe, and personal liability for responsible individuals (the Trust Fund Recovery Penalty) is almost always pursued.
The 30-Day CDP Window
File Form 12153 within 30 days to request a CDP hearing. The hearing stops levy action while pending and gives you the opportunity to propose alternatives. For employment tax debts, the IRS is less flexible than for income tax debts, but alternatives still exist: installment agreements, offers in compromise (though harder to get accepted for trust fund taxes), and currently not collectible status.
Parallel TFRP Risk
While the business deals with the CP297A, the IRS may simultaneously be pursuing the Trust Fund Recovery Penalty against individual responsible persons. The business debt and personal TFRP liability are separate tracks. Both need to be addressed.
Get Professional Help
Employment tax collection is the IRS at its most aggressive. The CDP hearing is your best tool for slowing the process and negotiating a resolution. Don't waste it by filing without a strategy.
If your business received a CP297A, call us immediately at (813) 229-7100. The 30-day deadline is firm.