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CP297Critical - Act Immediately

IRS Notice CP297: Business Levy Notice - Protect Your Business Assets

IRS Notice CP297 is a final notice to businesses before the IRS levies business assets. Learn how to protect accounts receivable, bank accounts, and business property.

Last updated: January 15, 2026

Immediate Action Required

Response deadline: 30 days for CDP hearing

What This Notice Means

Notice CP297 is the business equivalent of CP90. It's a final notice that the IRS intends to levy your business assets, including bank accounts, accounts receivable, equipment, and inventory. You have 30 days to request a Collection Due Process hearing.

Immediate Steps to Take

  1. 1File Form 12153 within 30 days to request a CDP hearing
  2. 2Protect critical business assets by exploring resolution options
  3. 3Gather business financial records for hardship or alternative proposals
  4. 4Consider the impact on employees and operations

What Business Assets Are at Risk

The IRS can levy virtually any business asset:

  • Business bank accounts - Operating accounts, payroll accounts
  • Accounts receivable - Money your customers owe you
  • Equipment and machinery - Vehicles, computers, tools
  • Inventory - Products held for sale
  • Real property - Business real estate (with additional approvals)

Critical concern: A levy on accounts receivable means the IRS contacts your customers directly, which can damage business relationships.

Business-Specific Resolution Options

Businesses have some unique considerations:

Business Installment Agreements

The IRS may accept payment plans that allow you to continue operating and pay over time.

Trust Fund vs. Non-Trust Fund

If your debt includes payroll taxes, the trust fund portion (employee withholding) is prioritized. You may be able to negotiate differently for the employer portion.

Business Currently Not Collectible

If your business genuinely can't pay, you may qualify for CNC status, though this is harder for businesses than individuals.

Closing the Business

If the business isn't viable, an orderly wind-down with the IRS may be better than forced levies.

Frequently Asked Questions

Can the IRS contact my customers about accounts receivable?

Yes. An accounts receivable levy means the IRS sends notices to your customers directing them to pay the IRS instead of you. This can seriously damage business relationships and cash flow.

Will a business levy affect my personal assets?

A CP297 is specifically for business tax debt. However, if you're personally liable (sole proprietor, or assessed the Trust Fund Recovery Penalty), you may also receive personal levy notices. The IRS can pursue both.

Can I keep my payroll account protected?

The IRS can levy payroll accounts, but they're supposed to consider the impact on employees. If you're making current payroll tax deposits and trying to resolve the debt, you can argue for leaving payroll funds alone. This isn't guaranteed.

Need Help With Your CP297 Notice?

Licensed tax professionals can analyze your notice, explain your options, and handle the IRS response for you. Many offer free consultations.

Get Professional Help

Authority Citations

This content is based on the following official IRS sources. All links open in a new tab.

Information current as of 2026. Tax laws change frequently. Verify with official IRS sources before taking action.