Business owners should watch for erroneous IRS notices

July 25, 2016

The IRS announced today that erroneous notices were sent to businesses. There were two separate notices sent in error. The first notice indicates that the IRS has issued an intent to seize assets of the business. These letters will be identified as a CP297 letter. The second notice, a CP298 notice, indicates that the IRS intends to seize up to 15% of Social Security benefits. Businesses may receive one, both or neither of the notices. In the event that you receive a notice contact the IRS immediately to indicate that you received a notice and that you believe that the notice was received in error. Below is a copy of the alert sent by the Federal Payment Levy Program (FPLP): “A Federal Payment Levy Program (FPLP) problem was recently identified. In cycle 201625 and 201626, (Week 25 and 26 of 2016) the CP 297 Intent to seize your assets and notice of your right to a hearing and CP 298 Intent to seize up to 15% of your Social Security benefits notices were erroneously issued on some Business Master File (BMF) accounts. These are business 941 or 1120 etc. NOT Individuals The Bureau of Fiscal Service (BFS) erroneously matched the FPLP EIN with the unrelated SSA payment for an SSN with the same nine digits in the TIN. As a result of this, CP 297 and/or CP 298 were generated. The CP 297 and CP 298 instruct taxpayers to call the 1-800-829-3903 number for assistance. Taxpayers may be confused by these notices, as some of these businesses may be defunct and businesses do not receive SSA benefits. The notices were issued in error.”