Consultation

IRS Notice of Levy: How It Works and What You Can Do.

Total Tax Inc Trusted Since 1991, A+ BBB, Guaranteed Results

Get Started By Calling (208) 966-4122
Tax Resolution team - banner color background

Receiving a Notice of Levy in the mail is jarring; the language can make it difficult to understand what this letter means and how it affects you.

More so, you need to act quickly. You only have 30 days from the date on the Notice of Levy to come up with a plan to pay back the outstanding balance. 

Total Tax has more than 30 years of experience getting people just like you back into good standing with the IRS and state authorities. 

Don’t wait any longer – take action now.

Five star ratings on better business bureau and Google, plus a 30-day money back guarantee.

Notice of Levy: Defined

An IRS Notice of Levy is defined as a final notification letter to collect unpaid taxes. It is the final warning before the IRS is legally allowed to seize assets.

To put it simply, a Notice of Levy is the final heads-up before the IRS can start taking your paycheck, house, car - anything you own that can be used to pay down your balance.

When does the IRS issue a levy

The IRS is required by law to send multiple letters over a series of months before issuing a final levy.

If your mailbox has been flooded with multiple envelopes from the IRS they may have been the following:

  • CP14 Notice of Unpaid Taxes: Initial past-due letter explaining how much you owe and how to pay.
  • CP501 Reminder of Unpaid Taxes: A reminder notice is sent if the IRS does not receive a response, payment, or additional action was taken after the CP14 Notice. 
  • CP503 Second Reminder of Unpaid Taxes: Third and final reminder if no response, payment, or additional action was taken after the CP14 Notice and CP501 Notice. 
  • CP504 Notice of Intent to Levy: Notice of Intent to Levy is sent by certified mail to ensure that the letter is received. It documents that the IRS has the right to seize property or assets. You have 30 days to respond to this letter, or the IRS can begin the seizure. 
  • Letter 1058 or LT 11 Final Notice. The Final Notice is also sent by certified mail and serves as the last warning before property or assets are seized. 

News Alert

February 9, 2022, the IRS announced it would suspend automated notices and letters – including intent to levy notices – while it worked through a backlog of unprocessed returns.

 

As of the date of this article, there has been no formal announcement of when the notices will resume, but the agency does warn taxpayers to resolve unpaid taxes quickly because interest and penalties will continue to grow.

How Does an IRS Tax Levy Affect Me?

Looking over billsGet Started By Calling (208) 966-4122

It’s important to remember that an IRS tax levy is a serious matter and should be treated with urgency.

If the IRS has issued a Notice of Levy for unpaid taxes, it means that your financial assets are at risk. 

The government can take the following without any warning or notice after the final levy notice is issued:

  1. Tax refunds due to you
  2. Wages, salaries and other income
  3. Bank accounts
  4. Retirement funds
  5. Stocks, bonds and other investments
  6. Real estate
  7. Insurance policies
  8. Personal property including vehicles and jewelry
  9. Accounts receivable from your customers
  10. Business assets such as inventory and tools
  11. Other sources of income, such as rentals or trust funds
  12. Your Social Security benefits.

If you receive a final levy notice from the IRS, you should take immediate action to contact a tax attorney who can help negotiate on your behalf and find the best way to resolve the issue.

By doing so, you can reduce any financial burden you may be facing and protect your rights as a taxpayer.

An experienced Total Tax attorney can help make sure that your rights are protected and work with the government to come up with a resolution that works best for you.

Disagree with the Levy Notice? File an Appeal.

If you disagree with the information provided in your Final Notice of Intent to Levy and Notice of Your Right to a Hearing, you have every right to file an appeal. 

To file an appeal you will complete Form 12153 to request A Collection Due Process Hearing. 

Luckily, when you make a move to appeal, the IRS is prevented from further collection actions against your money or your physical property. 

You don’t need to face the IRS alone. You have the right to ask a tax attorney to represent you. 

Tax attorneys can help you understand your rights, determine the best repayment options and assist in completing the necessary paperwork.

Get Started By Calling (208) 966-4122
Bookkeeping

How to Resolve Tax Liability: Stop the IRS from Seizing Your Assets

The fastest way to stop the IRS from seizing your assets is to pay off all past-due taxes immediately.

While that is the ideal situation, it’s unrealistic as most of us don’t have that kind of money laying around. 

This is why the IRS has tax resolution programs available. 

IRS backed payment options are available and currently open for enrollment:

  • Partial Payment Installment Agreement
  • Currently Not Collectible Status
  • Offer-in-Compromise

Chat with Professional Tax Attorneys:

Contact us today for a free consultation. Let us help you get the tax relief you need and deserve.

Tax Resolution team - banner color background
Taxes sign on top of money

Get Hassle-Free Tax Relief

Get Started By Calling (208) 966-4122

Notice of Levy Success Stories

Quotes:

  • Placeholder person

    R.C.

    "I only wish I would have contacted Total Tax years ago when my tax problems first began."

    "When I first contacted their office Becky was extremely polite and listened very carefully without being judgmental, then offered several solutions and plans of action to help resolve my problems. I only wish I would have contacted Total Tax years ago when my tax problems first began. I would recommend them to anyone who is having trouble with the IRS and who feel helpless in resolving their tax nightmare."

    • Your Tax Questions Answered

    Below are frequently asked questions about unfiled tax returns. Don’t see your question below? Check out our FAQ page or call … to have your question answered by a team member.

    Get Started By Calling (208) 966-4122