What to Do if You Receive an Intent to Levy?

Receiving an Intent to Levy notice from the IRS is a scary situation. This means that something has went terribly wrong with your taxes, and that you have yet to do anything to fix the problem. Even though this is a bad situation, if you make the right moves and handle the Intent to Levy carefully you may be able to get back in the good graces of the IRS so that things do not progress any further.

An Intent to Levy does not mean that the IRS is going to show up at your house, kick you out, and take your stuff. But it does mean that you have ignored past notices to pay past due taxes, and that they are now getting very serious about collecting.

You should not ignore an Intent to Levy, but it is not time to panic just yet either. If you know your rights, and look deeper into your situation, you will probably find that you can get into the good graces of the IRS once again by taking a few steps.

A tax levy can be attached to your home or automobile. While this is a possibility, in most cases the levy is attached to your bank account (bank account levy) and/or wages. This means that the IRS is more or less taking what you owe because you are not willing to give it to them.

How can I prevent a tax levy? The best way to do this is to get in touch with the IRS and come to an agreement on how you are going to pay them back. As long as you are not hiding from the IRS, and are willing to work with them to find a solution, you will probably never find an Intent to Levy letter in your mailbox. For example, you can agree to an installment agreement or submit an offer in compromise. This will slow down the levy process, and may stop it in its tracks if you begin to pay your back taxes.

There are two types of Intent to Levy notices that the IRS sends out: CP 297 – Notice of Intent to Levy and Notice of your Right to a Hearing; and CP 523 – Notice of Intent to Levy – Defaulting on your Installment Agreement.

CP 297 is used to notify the person that there is an unpaid balance that the IRS has previously requested to be paid.

CP 523 is for those who were paying via an installment agreement but defaulted. This notice explains the reason for the default, to notify the intent to levy, and to offer options for stopping this process.

If you receive an Intent to Levy you should immediately get in touch with the IRS. Instead of panicking and thinking that you have no other option than to let the IRS do what they want, talk to them to see what options are available.

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