IRS Notice of Levy: Received a Notice of Intent to Levy?
Receiving an intent to levy notice from the IRS can be scary since it likely means that something has gone terribly wrong with your taxes and that you have yet to do anything to fix that problem. While this is clearly not a good situation, you may be able to get back into the good graces of the IRS if you make the right moves and handle the intent to levy carefully to ensure that things do not progress any further.
An intent to levy notice does not mean that the IRS is going to show up at your house, kick you out and take your belongings, but it does mean that you’ve ignored past notices to delinquent taxes and that the IRS is now becoming very serious about collecting.
A tax levy is a way for the IRS to take what you owe since you are unwilling to pay them on your own. In most cases, the IRS will levy your bank account in addition to levying your wages, social security, and other assets. A tax lien may also be attached to your home in conjunction with a tax levy.
How Can I Prevent a Tax Levy?
The best way to prevent a tax levy is to contact the IRS so that you can come to an agreement on how you will pay back the taxes that you owe. You can set up an IRS installment agreement or submit an offer in compromise to slow down the levy process – and possibly even stop it in its tracks – once you begin to pay your back taxes.
As long as you are willing to work with the IRS to find a solution – as opposed to hiding from them – it is a safe bet that you will never have to worry about finding an letter of intent to levy notice in your mailbox.
Are All Tax Levy Notices the Same?
The IRS sends out several different types of intent to levy notices:
- CP 297/CP 90 – Final Notice of Intent to Levy and Notice of Your Right to a Hearing
- CP 523 – Notice of Intent to Levy – Defaulting on your Installment Agreement
- Letter 1058 / LT11 – Final Notice of Intent to Levy and Notice of Your Right to a Hearing
- CP 91/CP 298 – Final Notice Before Levy On Social Security Benefits
CP 297 and CP 90 are letters used as notification of an unpaid balance that the IRS has previously requested payment for, and that IRS intends to levy federal payments, such as Social Security benefits, owed to the delinquent taxpayer.
CP 523 is sent to people who were paying via an installment agreement but defaulted. This notice explains the reason for the default, informs of the intent to levy, and suggests options for resolving the situation.
L-1058/L-T11 typically follows CP 504 (Final Notice Balance Due letter). An L-1058 states that you have a balance that you have failed to address despite all of the notification letters previously sent to you, and warns that after 30 days the IRS will issue a levy on your personal assets.
CP 91 and CP 298 are letters sent to taxpayers who still owe money despite having received letters warning them of a 15% levy on social security benefits that would take effect if their tax bill was not paid off or a payment agreement was not set up. Either CP 297 or CP 90 will usually precede one of these letters.
If you have received a letter of intent to levy, contact the IRS immediately to learn more about the options available to you. Take solace in the fact that if you know your rights, investigate your situation properly, and take a few steps – either on your own or with the help of a tax professional – to rectify your situation, you will most likely get back into the good graces of the IRS.
Tax Levy Help and Related Topics
Back Taxes Frequently Asked Questions
Common questions taxpayers have about back taxes and the different problems and situations that arise from owing or not filing taxes.
10 Ways to Release a Tax Levy
There are many different ways a tax levy can be stopped. Here is a guide that details out 10 different methods that can be used. The one you choose should be dependent upon your unique situation.
General Tax Levy Information
Learn about what a tax levy is, the different types of levies, why they are filed and what it might mean for you. Understanding how these collection mechanisms work is the first step to stopping the IRS and removing the levy.
IRS CP Notice 297 – Notice of Intent to Levy
This is a serious notice that should not be ignored. Learn about the steps that you must take in order to prevent or remove a levy filed against you.
How the IRS Collection Process Works
The IRS works in a very methodical way. Here is an overview of the collection process and tips on how to stop their process dead in it’s tracks.
Tax Levy Help
If you need assistance removing or stopping an IRS or state tax levy, our experienced tax professionals can help.