Received an IRS Notice of Intent to Levy? Do This Immediately
Urgent Steps to Protect Your Assets and Resolve Your Tax Debt
Received an IRS Notice of Intent to Levy? Do This Immediately
If you've received IRS Letter 11 or 1058, it's critical to take immediate action. This Notice of Intent to Levy informs you that the IRS plans to seize your assets to satisfy unpaid taxes if you don't pay or make arrangements to pay within 30 days.1 This is a serious step in the IRS collection process that demands your full attention.
Protect your rights by appealing the issuance of this notice as provided below.
What is a Levy?
A levy is a legal seizure of your property or assets to satisfy a tax debt. This can include:
Money from your bank accounts
Your wages
Your car or home
Social Security benefits
Ignoring this notice could result in the IRS taking your assets, potentially causing severe financial hardship.
Why You Received This Notice
The IRS sent this notice because:
They previously sent a bill showing the amount owed and demanded payment
They did not receive payment or hear from you
They are now moving forward with collecting the debt by seizing your property
Steps to Take Immediately
File an Appeal Within 30 Days
You have 30 days to challenge the IRS's decision and propose an alternative payment method or dispute the amount owed. Use Form 12153 to file your appeal.
Stop the Levy
Filing an appeal temporarily halts the IRS from levying your assets until they decide on your case, typically taking several months. This provides valuable time to develop a solution.
Work on Resolving Your Tax Debt
While your appeal is processing, demonstrate your willingness to pay your debt without asset seizure. Options to reduce or manage your tax liability include:
Offer in Compromise: Settle your tax debt for less than the full amount owed
Installment Agreement: Make monthly payments over time
Partial Payment Installment Agreement: Make manageable monthly payments you can afford
Currently Not Collectible Status: Temporarily halt collection if you can't pay anything now
Penalty Relief: Request reduction or elimination of penalties.
One of these options can permanently solve your tax debt.
Implementing The Best Plan of Action
File an appeal to protect your assets and buy time
Prepare a plan to pay or reduce your tax liability while the appeal is pending
Consider an Offer in Compromise: If you truly can't afford to pay your full tax debt. The IRS may accept a reduced amount based on your ability to pay.
Partial Payment Installment Agreement: This is a great option because your monthly payment will be only what you can afford to pay.
Why Choose Us for Your IRS Tax Problem?
At our firm, we have successfully helped hundreds of clients resolve their tax issues with the IRS using the strategies outlined above. Our team of experienced tax professionals has the knowledge and expertise to guide you through the process with confidence and ease. We understand the ins and outs of dealing with the IRS and can help you navigate the complex world of tax resolution.
Frequently Asked Questions About IRS Notice of Intent to Levy
What is an IRS Notice of Intent to Levy?
An IRS Notice of Intent to Levy is a formal warning that the IRS intends to seize your property or assets (such as bank accounts, wages, or real estate) to satisfy unpaid tax debt. By law, the IRS must send this notice at least 30 days before taking collection action, giving you a final window to pay the debt or file an appeal.
What is the difference between IRS Notice CP504 and Letter 1058?
While both mention a levy, they have different legal powers:
CP504: This is a "Notice of Intent to Levy" that primarily targets your state tax refund. It is a serious warning but does not yet give the IRS the right to seize your bank account or wages.
Letter 1058 / LT11: This is the Final Notice of Intent to Levy. It grants the IRS full legal authority to seize your assets and, most importantly, provides you with the right to a Collection Due Process (CDP) hearing if you act within 30 days.
Can the IRS take my house with a Notice of Intent to Levy?
Yes, the IRS has the legal authority to seize and sell your home to pay tax debt. However, seizing a primary residence is considered a last resort and requires a federal court order. The IRS typically targets liquid assets like bank accounts and wages first.
How can I stop a levy after receiving a notice?
You can stop an IRS levy by taking one of the following actions within the 30-day window:
Request a CDP Hearing: Filing Form 12153 halts most collection actions while your case is reviewed.
Set up a Payment Plan: Establishing an Installment Agreement often stops levy proceedings.
Prove Financial Hardship: If the levy prevents you from meeting basic living expenses, you may qualify for "Currently Not Collectible" status.
Offer in Compromise: You may be able to settle your debt for less than the full amount if you meet specific IRS criteria.
Does a Notice of Intent to Levy affect my credit score?
The notice itself is a private correspondence and is not reported to credit bureaus. However, if the IRS follows the notice by filing a Notice of Federal Tax Lien, that public record can make it difficult to get credit, sell property, or secure loans.
About the Author
Thomas F. Dilullo
Thomas F. DiLullo brings a powerful combination of legal and financial expertise to tax resolution as both a licensed attorney and Certified Public Accountant. With over three decades of experience, Mr. Dilullo has mastered the intricacies of tax law and accounting, providing unparalleled service to individuals and businesses facing complex tax challenges.
