Notice of Intent to Levy from IRS: What Do I Need to Know?

On: January 21, 2024

If you have just received a Notice of Intent to Levy from the IRS, you may be wondering just what you need to do. As you frantically try to figure out what is going on, you likely have a bunch of questions flying through your mind right now. One of the most important things to remember when you receive any type of notice from the IRS is not to panic and to call a professional tax representative. The IRS is not going to be your friend or protect your assets during the process – they actually want to take them. An IRS tax expert can walk you through what to do and help stop the levy. What the Heck Is a Levy? If you have never heard of a levy until you opened the notice in your hand right now, you may be wondering what the heck it is and what the notice means. A levy is a type of collection action that the IRS uses to collect on a tax debt. During the levy process, they will seize your assets and then use these assets to pay the debt. Some of the assets that can be seized include:

• Accounts receivable
• Retirement accounts
• Bank accounts
• Real property (cars, homes, etc.)
• Income

Okay, so I understand what a levy is…what does this IRS notice mean then? If the IRS has been unsuccessful in attempting to contact you or collect on a tax debt you owe, they may send you a notice of their intent to levy your assets. This notice is a warning directed to you that informs you that the IRS will be taking the action of seizing your assets should you not respond within a designated timeframe. The notice will detail the reason why the IRS is levying your assets, what exactly you can expect to happen, and how you can appeal the levy if you do not agree with it. Whether you received a Notice of Intent to Levy or you want to appeal one, it is recommended that you hire a tax professional to assist you. Is a Levy Inevitable Because I Received the Notice? No. In fact, it is possible to avoid or stop the levy process, but quick action must be taken. This is why it is recommended that you work with a professional tax team who is skilled and experienced in stopping levies. You must comply with the IRS to ensure the levy is avoided or stopped. What Assets Can the IRS Levy from Me?

• Bank accounts
• Vehicles
• Commissions
• Social Security benefits
• Wage compensation
• Contractor and vendor payments
• Property (residential and commercial)
• Retirement benefits

What Happens If I Ignore a Notice of Intent to Levy? It is not recommended. Ignoring a Notice of Intent to Levy will lead to the IRS seizing your assets. Do I Have Other Options to Pay? I Can’t Afford the Debt and Think Levy Is the Only One  A levy is a serious thing and not one that you want to have to deal with. There are other options available that can assist you in paying your tax debt, even if you cannot afford it right now. If you are unable to afford your tax debt and are facing a levy, don’t waste time and reach out to a tax professional immediately. Some of the debt relief options that may be available to you include:

• Short-term payment plans
• Long-term payment plans
• Offer in Compromise
• CNC (currently non-collectible) status

Receive a Notice of Intent to Levy? Leading Tax Group Can Help!  Receiving a Notice of Intent to Levy from the IRS can be a heart-stopping experience, but not one that you need to face alone. It is important that you have the best tax representation on your side to ensure the IRS does not take advantage of you and your situation. Leading Tax Group is your number-one source for any and all tax assistance that you may need. Our team is made up of experienced and knowledgeable retired IRS auditors, former tax attorneys, and tax accountants. We are here to help you better understand the notice you received and work to put an end to the levy the IRS intends to enact. A levy is a serious matter and one that should never be overlooked. Call Leading Tax Group today for help!