Received an IRS Notice of Intent to Levy? Do This Immediately
Urgent Steps to Protect Your Assets and Resolve Your Tax Debt
By Thomas F. DiLullo, Esq., CPA, LL.M. · Founder, Thomas F. DiLullo & Associates, P.C. · Updated October 2026
If you've received an IRS Notice of Intent to Levy, such as Notice LT11 or Letter 1058, take immediate action. This letter officially informs you that the IRS plans to seize your assets to satisfy unpaid taxes if you don't make arrangements to pay within 30 days. This is a serious step in the IRS collection process that demands your full attention.
The 30-day window is set by law: Internal Revenue Code §6331(d) requires the IRS to give written notice at least 30 days before it levies, and §6330 gives you the right to a Collection Due Process (CDP) hearing before the levy goes forward.
Reasons Why You Received a Notice of Intent to Levy
Possible reasons why the IRS sent a notice:
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
Which Levy Notice Do You Have?
CP504: Notice of intent to levy your state tax refund. Serious, but it does not yet give you CDP hearing rights.
LT11 / Letter 1058: Final Notice of Intent to Levy and Notice of Your Right to a Hearing. The 30-day CDP clock starts here (IRS explanation).
CP90: Final notice of intent to levy for certain federal payments, such as Social Security or federal contractor payments.
Do this Immediately
File an Appeal Within 30 Days to Stop the Levy
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. 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, you must 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.
If a levy has already been issued and it is causing economic hardship, IRC §6343 requires the IRS to release it. See our IRS levy defense page for how we pursue levy releases.
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
Offer in Compromise - If you truly can't afford to pay your full tax debt, an OIC may be accepted with 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. In 2024 the IRS accepted roughly 24% of offer in compromises. Currently in 2026, the acceptance rate is even worse sitting at a low of 14% due to stricter rules.
Our Firm's OIC acceptance rate hovers around 95%*
If you have a serious tax debt, we can help. Get a private team with the knowledge and expertise to handle the process with confidence. Schedule a confidential case evaluation or call (201) 488-0070.
About the Author
Thomas F. DiLullo, Esq., CPA founded Thomas F. DiLullo & Associates, P.C. in 1989. He has been a Certified Public Accountant since 1980 and has practiced federal and state tax law since 1984. He holds an LL.M. in Taxation from New York University School of Law and a J.D. from the University of Miami School of Law, and is a member of the American Academy of Attorney-Certified Public Accountants and the New Jersey State Bar Association Taxation Section. He regularly represents taxpayers in IRS collection matters, Collection Due Process hearings, and the United States Tax Court.
Sources
26 U.S.C. §6330 – Notice and opportunity for hearing before levy
IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing
Disclaimer: *Past performance does not guarantee future results. This article is general information, not legal advice, and reading it does not create an attorney-client relationship. Your options depend on your specific facts.
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 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, Esq., CPA
Thomas F. DiLullo founded the firm in 1989 and is licensed as both an attorney and a Certified Public Accountant. He holds an LL.M. in Taxation from NYU and has practiced federal and state tax law since 1984. He represents individuals and businesses in IRS and New Jersey Division of Taxation disputes, from audit through Tax Court.
