Client Situation: Robert, a small business owner (S-Corp) in Georgia, received CP90 in February 2025 for $63,000 in unpaid payroll taxes (Form 941) from 2022 and 2023. His bookkeeper had failed to remit payroll tax deposits, and by the time Robert discovered the problem, the IRS had already sent CP14, CP501, CP503, and CP504 — all to an old business address. CP90 was the first notice Robert actually received.
The Challenge: Robert’s business was generating revenue but had tight margins. Paying $63,000 would bankrupt the company. He had 18 days remaining on his CDP deadline when he contacted Global Gate.
Global Gate’s Approach:
1. Emergency filing of Form 12153 — We filed the CDP hearing request within 48 hours of engagement, with 16 days to spare. All levy action was immediately suspended.
2. Financial analysis — We prepared a detailed Form 433-B (Collection Information Statement for Businesses) showing the company’s income, expenses, and assets.
3. Trust Fund Recovery Penalty (TFRP) assessment — We advised Robert on the potential personal liability under IRC § 6672 for the trust fund portion of the payroll taxes.
4. CDP hearing strategy — We proposed an installment agreement based on the company’s ability to pay, demonstrating that levying the business accounts would destroy the company and eliminate any chance of the IRS collecting the full amount.
5. Negotiation — The Appeals Officer agreed that levying would be counterproductive. We negotiated a 72-month installment agreement at $1,100/month for the business, with a separate installment agreement for any personal TFRP liability.
Result: Robert’s business survived. No bank levy was issued, no assets were seized, and the company continued operating while making manageable monthly payments. Total time from CP90 to resolution: 5 months. The CDP hearing bought Robert the time he needed to present a viable repayment plan.
Key Takeaway: Without the CDP hearing, the IRS would have levied Robert’s business bank account within 30 days — likely forcing the company to close and eliminating the IRS’s ability to collect any of the $63,000 through ongoing payments. The CDP hearing turned a catastrophic outcome into a manageable resolution.