Most people don't know the IRS can levy Social Security benefits. They can. The CP91 is the notice telling you they intend to. The IRS can take up to 15% of your monthly Social Security payment to satisfy a tax debt.
For retirees living on fixed income, losing 15% of Social Security can be devastating. If your monthly benefit is $2,000, the IRS takes $300 every month until the debt is satisfied or the collection statute expires.
How It Works
The CP91 is a final notice, similar to the CP90. It informs you of the IRS's intent to levy and your right to a Collection Due Process hearing. The 30-day window to request a CDP hearing applies here too.
If you don't request a hearing or otherwise resolve the balance, the IRS sends a levy notice to the Social Security Administration. SSA then reduces your monthly benefit by 15% and sends that amount to the IRS. The levy continues every month until the debt is paid or you reach a resolution with the IRS.
Who Gets This Notice
The CP91 typically goes to retirees or disabled individuals who have unresolved tax debts and whose primary income is Social Security. The IRS may have been unable to collect through other means because there are no wages to garnish and no significant bank account balances to levy.
How to Stop It
Request a CDP hearing within 30 days. During the hearing, you can propose alternatives. Currently Not Collectible status is often the strongest argument for Social Security recipients. If your income is limited to Social Security and the levy would create a financial hardship, the IRS may agree to place your account in CNC status, which stops collection activity.
You can also propose a small installment agreement that's less than the 15% the IRS would take through the levy. Or if you qualify, submit an Offer in Compromise based on your limited ability to pay.
Financial Hardship
If the Social Security levy would prevent you from meeting basic living expenses (food, housing, medical care, transportation), the IRS is required to release the levy under IRC Section 6343. Document your monthly expenses and show that the levy creates a hardship. The IRS must consider this in the CDP hearing and in any collection decision.
If you've received a CP91, call us immediately at (813) 229-7100. We handle Social Security levy cases and know how to protect your benefits.