Notice of Intent to Levy | Flat Fee Tax Service | San Diego CA
Updated: Jul 22
Three (3 ) Things You Should Do Immediately When The IRS Sends You A “Notice of Intent to Levy” What You Should Do Immediately When The IRS Sends You “Notice of Intent to Levy."
You may or may not know how a surprise notice from the IRS can quickly derail your life and plans, both in business and personally.
1. How should you respond?
2. What can you do to get the IRS to take you seriously.
3. How can you get a reasonable path to relief, and give you the best possible tax debt settlement?
This article is brought to you by the tax professionals at Flat Fee Tax Relief. Our teams, located in San Diego, California, and Clearwater, Florida, provide valuable IRS tax debt help at a very affordable fee.
Today, you’ll learn exactly how to tackle IRS tax debt to reduce IRS pressure. You probably know you need to settle your tax debt. Here’s how to start making progress toward that goal.
We’ll start things off with the 4-5 notices the IRS sends you about 5 weeks apart which let you know they are about to levy. Here's the good news you should know:
The IRS must send you several notices before seizing your assets.
The last notice is called "Final Notice. Notice Of Intent To Levy and Notice of Your Right to a Hearing." This letter gives notice that you are running out of time before the IRS can levy your wages, paycheck and bank account. The word “levy” (#IRSgarnishment) means involuntary seizure or taking.
The IRS can garnish your wages or take other drastic enforcement action. It can be confusing to know when the IRS is about to seize assets! You will not know you are beng levied by the IRS until it actually happens.
The second-to-last notice is also called Notice of Intent to Levy, but doesn’t advise you of your right to a hearing.
Although the law requires the IRS to give proper notice before they can levy your bank account, the law only requires that the IRS mail the notices out. The IRS can send a notice to any address that they have on file. If you have moved, you may not be aware of any notice to levy.
According to Internal Revenue Code Section 6330, the IRS is required to notify you in writing before levying. Once again, the IRS is only required to mail you the notice. The IRS is not required to make sure you received the notice.
The notice to levy must include information telling you about your right to appeal the threatened collection action within 30 days.
Here are the collection letters the IRS mails to individuals:CP14 (Notice of unpaid taxes)
CP501 (Reminder of unpaid taxes)
CP503 (Second reminder of unpaid taxes)
CP504 (Notice of Intent to Levy) May seize state tax refund by stated deadline.
Letter 1058 or LT 11 and other letters (Final Notice. Notice of Intent to Levy and Notice of Rights to Appeal).
The first three notices are sent by regular mail and the final two by certified mail. Here are steps to take when you receive the last notice.
3 Action Steps To Take When You Receive the Final Notice of Intent To Levy:
1. Read the notice carefully.
It should state “Final Notice. Notice of Intent to Levy and Notice of Your Right to Appeal”.
If it only states “Notice of Intent to Levy”, this is not the final notice that gives the IRS authority to seize your assets (other than state tax refunds). If the letter does not give you notice of your right to appeal this IRS collection action, you still have one notice to go before they can levy.
Another way to tell is by the designation of the notice found at the top right of the notice.
The final notice is an LT11 or L1058 (and others as well). The one designated as CP504 is the second-to-last notice mentioned above. This one does not give the IRS the right to levy, because it does not contain a notice of your right to appeal this action by the IRS.
2. Take notice of the collection date.
Next, take notice of the date when the IRS can actually take action to seize your assets.
You will find it is listed on the notice. Here is the language used and found around the middle, left side of the first page (bold is our emphasis):
We haven’t received a payment despite sending you several notices about your overdue taxes. The IRS may seize (levy) your property or your rights to property on or after July 1, 2020.
In this example you need to take action by July 1, 2020 or risk levy action by the IRS.
If you ignore this deadline you might be dismayed when you find your paycheck has been seized or you visit an ATM and realize there is no money in your bank account.
Your employer might tell you that a significant portion of your paycheck has been garnished by the IRS. Fortunately, you can prevent this from happening to you.
3. File an appeal.
The third step to take when you receive this last "Final Notice. Notice of Intent to Levy and Notice of Your Right to a Hearing" is to file an appeal. This gives you time to consider your options by preventing the IRS from levying your assets.
By filing an appeal, you take the file away from the Collections Division and place it in the hands of the Appeals Division. This will normally give you several months to resolve your situation.
Sometimes even without an appeal you can contact the Collections Division of the IRS. You can try to work out a solution with them to prevent the IRS from levying your bank account or seizing other assets.
There are a number of options you have to resolve your tax liability including:
5. Statute of Limitations has run out. This is due to expiration of the period allowed for the IRS to collect the amounts owed. There are other possible tax relief options available depending on the circumstances of each case.
Sometimes though, you need professional help.
Whether or not you should get a tax professional involved depends on the amount owed, personal financial condition, and accuracy of the IRS' assessment of your tax liability. You more than likely will be better off hiring someone who deals with the IRS on a regular basis.
IRS laws and regulations are deliberately confusing. The IRS wants the average taxpayer to be confused regarding their options. Most people will not be able to figure out their rights and settlement options when negotiating with the IRS.
A comprehensive consultation with a Flat Fee Tax Service professional will take 20 to 30 minutes. It's a free, no obligation conversation that will provide you with all of your tax relief options. Give our teams a call.