What is IRS Notice CP297?

IRS Notice CP297 is the FINAL notice of intent to levy — the last warning before the IRS seizes your assets. Under IRC §6330, the IRS must send you a final notice of intent to levy at least 30 days before it can actually levy your property. CP297 satisfies this requirement. It means the IRS has exhausted the notice sequence (CP14 → CP501 → CP503 → CP504 → CP297) and is now preparing to take your wages, bank accounts, retirement accounts, accounts receivable, Social Security benefits, and other assets. This is the most urgent collection notice — it carries your right to request a Collection Due Process (CDP) hearing, which is your most powerful procedural defense.

What rights does CP297 give me?

CP297 triggers your right to a Collection Due Process (CDP) hearing under IRC §6320/6330. You have 30 days from the date of CP297 to file Form 12153 (Request for a Collection Due Process or Equivalent Hearing). A CDP hearing allows you to: (1) challenge the existence or amount of the underlying tax liability (if you did not receive a statutory notice of deficiency or otherwise had a prior opportunity to dispute), (2) propose collection alternatives — installment agreement, Offer in Compromise, currently-not-collectible status, (3) argue that the levy would cause economic hardship, (4) raise spousal defenses (innocent spouse), (5) challenge the appropriateness of the IRS's collection action. The CDP hearing is conducted by an independent IRS Appeals officer, not the collection function that proposed the levy. If you disagree with the Appeals decision, you can petition the U.S. Tax Court within 30 days.

What happens if I don't respond to a CP297?

If you do not file Form 12153 within 30 days, the IRS may proceed with levy without further notice. What the IRS can seize: wages — up to ~75% of take-home pay via continuous levy, bank accounts — all available funds (21-day holding period applies), Social Security benefits — up to 15% via the Federal Payment Levy Program, retirement accounts — entire vested balance, accounts receivable — payments from your customers/clients, state tax refunds, commissions, rental income, and other property. If you miss the 30-day CDP deadline, you can still request an Equivalent Hearing within 1 year — but an Equivalent Hearing does NOT suspend levy action while pending, and you cannot appeal the decision to Tax Court.

How do I stop a CP297 levy immediately?

To stop the levy: (1) FILE FORM 12153 IMMEDIATELY — requesting a CDP hearing automatically suspends levy action while the hearing is pending. (2) Pay the balance in full — levy threat ends. (3) Enter into an installment agreement — request one before the levy date. The IRS will typically suspend levy if you're negotiating an agreement in good faith. (4) Submit an Offer in Compromise — levy is suspended while an OIC is pending. (5) Request currently-not-collectible status — if you can show economic hardship. (6) File bankruptcy — the automatic stay stops all IRS collection, including levies. The CDP hearing (Form 12153) is your fastest, most powerful tool — file it now to buy time while you negotiate a resolution.

What is the difference between CP504 and CP297?

Both are levy-related, but they serve different functions in the collection sequence: CP504 is the NOTICE OF INTENT TO LEVY — the second-to-last notice. It warns that the IRS may levy, but it does NOT provide CDP hearing rights. CP297 is the FINAL NOTICE OF INTENT TO LEVY — the last notice. It carries your CDP hearing rights under §6330, and it is often accompanied by Notice 1215 explaining your CDP rights and Form 12153. CP297 is delivered by certified mail, return receipt requested in many cases. Once CP297 is sent and the 30-day period expires, the IRS can levy — no further notice required.

FINAL NOTICE — Intent to Levy — 30 Days to Act

IRS Notice CP297: Final Levy Warning

This is the last notice you'll receive before the IRS seizes your wages, empties your bank accounts, and takes your property. You have 30 days to request a CDP hearing and stop the levy. After that, the IRS can act without warning.

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CP297 Is an Emergency — Act Within 30 Days

CP297 is the culmination of the IRS collection process. The notice sequence — CP14 → CP501 → CP503 → CP504 → CP297 — represents escalation that should have been addressed long before this point. But if you're here now, the most important thing to understand is: you still have rights, and you can still stop the levy. The CDP hearing is a powerful procedural defense that buys you time (typically 3-6 months while the hearing is pending) and gives you a forum to negotiate alternatives that work for your financial situation.

What CP297 Lets the IRS Take

Wages

Up to ~75% of take-home pay via continuous levy (Form 668-W). Only a small exempt amount based on standard deduction + personal exemptions is protected.

Bank Accounts

All funds on deposit — 21-day hold then seizure. This includes checking, savings, CDs, and money market accounts.

Social Security

Up to 15% of monthly benefits under the Federal Payment Levy Program (FPLP). No court order required.

Retirement Accounts

401(k), IRA, pension — entire vested balance can be levied. Early withdrawal penalties may apply on top of the levy.

Accounts Receivable

Payments from your customers/clients — the IRS sends levy notices directly to your payors.

State Tax Refunds

Offset through the Treasury Offset Program — your state refund is intercepted and applied to federal debt.

Your CDP Hearing Rights — How to Stop the Levy

File Form 12153 (Request for a Collection Due Process or Equivalent Hearing) immediately — postmark it within 30 days of the CP297 date

The CDP hearing is conducted by an independent IRS Appeals officer — not the collection agent proposing the levy

In the hearing, you can: challenge the underlying tax liability, propose an installment agreement, submit an Offer in Compromise, request currently-not-collectible status, or argue spousal defenses

Levy action is SUSPENDED while the CDP hearing is pending — this buys you months to negotiate

If Appeals rules against you, you can petition the U.S. Tax Court within 30 days — this further extends the levy suspension

If you miss the 30-day CDP deadline, you can still file for an Equivalent Hearing within 1 year — but levy is NOT suspended while the Equivalent Hearing is pending

Frequently Asked Questions

How fast after CP297 can the IRS levy my wages?

The IRS cannot levy until 30 days after CP297 is issued (the CDP hearing request window). If you file Form 12153 within that 30 days, levy is suspended until the CDP hearing concludes and any Tax Court appeal is resolved — typically 6-12 months. If you do NOT file Form 12153, the IRS can levy on day 31.

Can the IRS levy my entire paycheck?

No. Under IRC §6334, a portion of your wages is exempt from levy. The exempt amount is calculated based on the standard deduction plus personal exemptions, divided by the number of pay periods. For a taxpayer filing as single with no dependents, the exempt amount is approximately $274 per week (as of 2026). The IRS takes the rest. Example: if you earn $800/week, approximately $526/week is subject to levy. This is why a wage levy is financially devastating — it takes the majority of your income, every pay period, until the debt is resolved.

Should I file bankruptcy to stop a CP297 levy?

Filing bankruptcy (Chapter 7 or Chapter 13) triggers the automatic stay, which immediately stops ALL IRS collection including levies. However, bankruptcy is not always the right answer: (1) not all tax debts are dischargeable — income taxes must meet specific timing tests, (2) a CDP hearing may achieve the same result (levy suspension) without bankruptcy on your record, (3) bankruptcy filing fees and attorney costs may exceed the cost of resolving the tax debt directly. Bankruptcy should be evaluated alongside all other options by a qualified professional.

The Clock Is Ticking — 30 Days to Stop the Levy

Do not wait. Every day you delay is one day closer to wage garnishment, bank levies, and property seizure. We can file your CDP hearing request today.

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