When you receive a Notice of Intent to Levy, review the notice carefully and confirm the amount owed. After this, you may contact the IRS or a tax attorney immediately to discuss options before the levy is enforced. You may be eligible for a payment plan, offer in compromise, or other relief to stop the levy. If you disagree with the IRS, you can request a Collection Due Process hearing to appeal the levy.
At Victory Tax Lawyers, our seasoned tax professionals can help you respond to a levy notice and protect your assets. Schedule a free consultation today.
In this guide, we’ll explain what a Notice of Intent to Levy means, the different types of levy notices, why you may have received one, and what steps you can take to prevent the levy.
What Is a Notice of Levy?
A Notice of Levy is a formal enforcement action authorized under the Internal Revenue Code that allows the IRS to take a taxpayer’s property or rights to property to collect unpaid taxes. When a levy is issued, it may apply to wages, other income, or a bank account, which often reflects the IRS taking immediate steps to secure funds owed. At this stage, the IRS has already determined that the tax balance is legally due and collectible.
Before the IRS can levy your property, it must provide advance notice and issue a notice of your right to challenge the action. This includes informing you of your right to request a Collection Due Process hearing. If no response is made within the required time, the IRS may proceed with the levy, and your bank account reflects the IRS taking available funds up to the amount of the tax debt. According to the IRS Data Book, in the fiscal year 2024, the IRS collected $120.2 billion in unpaid tax assessments, netting $77.6 billion after credit transfers through enforcement and collections activities.
Although a Notice of Levy has serious financial consequences, it may be lifted or released in certain situations. Paying the balance in full, entering into an approved payment arrangement, or demonstrating economic hardship can lead to a release of the levy under the Internal Revenue Code. Acting promptly after receiving notice is critical, as options become more limited once the IRS has begun taking assets.
How Does the IRS Issue a Notice of Levy?
According to the Taxpayer Advocate Service, the IRS issued approximately 286,270 levies in fiscal year 2023 as part of its enforcement efforts to collect unpaid taxes. Typically, the IRS begins the collection process after identifying unpaid taxes. This may result from unfiled returns, audit adjustments, or underreported income. Early IRS communications can include billing letters or a CP2000 notice. This notice proposes changes based on third-party income reporting.
If the debt remains unpaid, the IRS may send a Notice of Intent to Levy. This is a final warning that the IRS intends to seize property or income. No property is taken at this stage. The notice also explains the taxpayer’s rights. It includes the right to request a Collection Due Process (CDP) hearing. The taxpayer generally has 30 days to respond or appeal.
If the taxpayer does not respond, the IRS may issue a Notice of Levy. This allows the IRS to seize wages, bank funds, or other assets. The IRS may also levy other income sources. Once the levy is issued, options become more limited. Acting early is the best way to stop enforcement and resolve the debt.
Notice of Intent to Levy vs. Notice of Levy
A Notice of Intent to Levy is a warning. It tells you the IRS plans to seize property or income. This notice is issued before any assets are taken. It also gives you time to respond and appeal. You generally have 30 days to request a Collection Due Process hearing. During this period, the IRS cannot levy on your property.
A Notice of Levy is the actual enforcement action. It allows the IRS to seize wages, bank accounts, or other assets. The IRS can also notify third parties, like employers and banks. Once the levy is issued, options become more limited. You may still request relief, but acting early is critical.
IRS Collection Process Timeline
The process begins with a tax assessment. This happens after you file a return or after an IRS audit. The IRS calculates what you owe and records the balance. Next, the IRS sends a billing notice. This notice explains the amount due and how to pay. It also includes instructions and deadlines.
If the balance remains unpaid, the IRS sends reminder notices. These often include CP notices and other letters. The goal is to get you to pay or respond. After this, the IRS may issue a Notice of Intent to Levy. This is a formal warning that the IRS plans to seize assets. It also gives you time to respond or appeal. If the issue remains unresolved, the IRS may issue a Notice of Levy. This allows the IRS to seize wages, bank funds, or other property. The levy continues until the debt is paid or otherwise resolved.
Our 4-Step Levy Resolution Framework
- Step 1: Notice Review & Error CheckWe confirm the notice type, amount owed, and whether the IRS followed procedure.
- Step 2: Freeze & ProtectWe submit a CDP request and levy release requests to stop wage garnishment or bank freezes.
- Step 3: Choose the Best Resolution OptionWe evaluate installment agreement, OIC, CNC, penalty abatement, or innocent spouse relief.
- Step 4: Finalize & MonitorWe secure a written agreement with the IRS and monitor compliance to prevent future levies.
What Are the Common Types of Property Subject to a Notice of Levy?
A Notice of Levy allows the IRS to seize property or income to collect unpaid taxes. The IRS can levy many types of assets. Common assets that can be levied include bank accounts, wages, and real estate. The IRS can also levy retirement accounts, such as IRAs and 401(k)s. Investment accounts and brokerage funds are also at risk. Business assets, including accounts receivable, may be seized.
The IRS can also take other income, such as rental payments or contract income. In some cases, vehicles or personal property may be levied. Some assets are protected or exempt. Social Security benefits and veterans’ benefits are generally protected. Certain unemployment benefits are also protected. Income needed for basic living expenses may be protected as well. Some retirement funds may be protected depending on the situation.
When the IRS issues a levy, it often notifies third parties. Employers may receive a levy for wage garnishment. Banks may receive a levy to freeze and seize account funds. Property managers, mortgage companies, and business clients may also be notified. These third parties must comply once they receive the levy.
You may notice a levy if your bank account is frozen or funds are removed. You may also see reduced paychecks or wage garnishment. You may receive a formal Notice of Levy in the mail. If you suspect a levy, review the notice carefully and act quickly.
Types of Property Levied vs. Exempt Property
| Property Type | Levied by IRS? (Yes/No) | Notes / Exceptions |
| Bank accounts | Yes | Funds can be frozen and seized. Exceptions may apply for protected funds. |
| Wages / Salary | Yes | Employer garnishes wages. Some income may be exempt based on hardship rules. |
| Real estate | Yes | Can be seized or sold. Often requires additional steps and time. |
| Retirement accounts (IRA, 401(k)) | Yes | Some plans are protected. Levies can still apply depending on the account type and circumstances. |
| Investment accounts | Yes | Brokerage and investment funds can be seized. |
| Business assets | Yes | Includes accounts receivable and business income. |
| Other income (rental, contract income) | Yes | Other income sources may be levied if accessible. |
| Vehicles / personal property | Yes (sometimes) | Often, only in severe cases or when other assets are insufficient. |
| Social Security benefits | No (generally) | Usually protected, but may be affected in limited situations. |
| Veterans’ benefits | No | Generally exempt from levy. |
| Unemployment benefits | No (generally) | Usually protected, but may vary by state and case. |
| Essential living expenses | No | Income needed for basic living expenses is often protected. |
How Should You Respond to a Notice of Levy?
Receiving a Notice of Levy can be stressful, but you still have options. The key is to act quickly and understand your rights. The IRS must follow specific procedures, and you can challenge or resolve the levy before it causes more damage. Below are the steps you should take immediately after receiving the notice. Each step is designed to help you protect your assets and choose the best path forward.
Step 1: Review the Notice Carefully
Start by reading the notice immediately. This helps you understand the amount owed and the deadline. It also tells you what assets may be targeted, such as wages or a bank account. If anything looks incorrect, note it right away so you can address it in your response.
Step 2: Confirm What Is Being Levied
Next, verify what the IRS is trying to seize. Check if the levy applies to wages, bank funds, or other assets. Knowing what is at risk helps you decide your next move. If you find a mistake, you can dispute it during the appeal process.
Step 3: Request a Collection Due Process (CDP) Hearing
If you want to challenge the levy, you must act fast. You generally have 30 days from the notice date to request a Collection Due Process hearing. You can do this by filing Form 12153. A CDP hearing allows you to appeal the levy and propose a solution. It can also pause the levy while your case is reviewed.
Step 4: Explore Payment and Resolution Options
While your CDP hearing is pending, explore your options. If you can pay, doing so quickly may stop the levy. You may also qualify for an installment agreement, which allows for payment over time. In some cases, an Offer in Compromise can settle your debt for less than the full amount. Choosing the right option can help you resolve the levy in your best interest.
Step 5: Request a Levy Release
If the levy creates severe financial hardship, you can request a release. A levy release may also be possible if you enter a payment plan or settle the debt. The IRS will review your financial situation and decide if the levy should be lifted. If approved, this stops the IRS from seizing more funds.
Step 6: Do Not Ignore the Notice
Ignoring the notice only makes the situation worse. The IRS can garnish wages or freeze bank accounts. They can also seize tax refunds, including those from an amended return. In serious cases, your United States passport may be restricted. Acting early gives you more options and reduces long-term damage.
Tradeoff Overview
Different resolution options have different pros and cons. The right choice depends on your financial situation and the urgency of the levy. Here’s a quick comparison:
| Option | Best For | Trade-offs |
| Installment Agreement | Pay over time | Interest continues to accrue |
| Offer in Compromise | Severe hardship | Strict approval and documentation |
| Currently Not Collectible (CNC) | Temporary hardship | Debt remains, and penalties continue |
| Penalty Abatement | First-time mistakes | Only removes penalties, not tax |
| Innocent Spouse Relief | Spouse is responsible | Requires strong proof and time |
What Is a Notice of Intent to Levy?
A Notice of Intent to Levy is a formal legal notice from the IRS. It states that the IRS intends to seize property or income to collect unpaid taxes. This notice means the agency is preparing to take enforcement action. The notice is issued under an Internal Revenue Code section, specifically Section 6331(d). It is typically sent after multiple notices go unanswered. Although separate from a tax lien or federal tax lien, it often follows the filing of one.
Once a notice of levy is issued, the IRS may begin taking wages, bank funds, other income, or other assets. In certain cases, including a disqualified employment tax levy, the IRS can act quickly. Taxpayers receive a notice explaining their right to appeal through the IRS Independent Office of Appeals. If unresolved, the dispute may be reviewed by the U.S. Tax Court. It is critical to review the notice carefully.
Failing to respond can result in wage garnishment, frozen accounts, loss of refunds from an amended return, or restrictions on a United States passport. Taking prompt action may allow solutions that are in the taxpayer’s best interest, such as a payment plan online or innocent spouse relief. Many taxpayers can seek a free consultation to understand their options and stop further IRS collection activity.
Why Did You Receive a Notice of Intent to Levy?
A common reason you may receive a Notice of Intent to Levy is that the IRS believes you have unpaid tax debt. The agency treats the outstanding balance as a legal obligation, whether it resulted from missed estimated tax payments, unfiled or past-due returns, or adjustments made after a tax audit.
Before issuing a levy notice, the IRS usually sends several preliminary collection notices. These often include letters such as the CP2000 and CP503 reminder notices. If those notices go unanswered, the IRS may then issue Letter 1058 or CP90. Receiving one of these levy notices signals that the IRS is preparing to move into the enforcement phase of collections.
Other circumstances that can prompt the IRS to issue a Notice of Intent to Levy include failing to file required tax returns, accumulating unpaid penalties or interest, rejecting or defaulting on an installment agreement, or ignoring earlier IRS collection attempts.
What Can the IRS Levy?
The IRS has the legal authority to seize a wide range of assets to collect unpaid taxes. This can include your bank account, wages, Social Security benefits, and personal property. The goal is to compensate for the tax debt you owe.
The IRS can issue a levy to your bank and freeze the funds in your account. You generally have a 21-day window from the date the bank receives the levy to resolve the issue. During this time, you may not be able to access or withdraw funds from the account.
The IRS can also garnish wages and other income. Wage garnishment continues until the debt is paid in full. The agency will notify your employer to deduct a portion of your paycheck. The IRS can also garnish your state income tax refund. Under the Federal Payment Levy Program (FPLP), the IRS can levy up to 15% of your Social Security benefits. This includes retirement and survivor benefits. However, Supplemental Security Income (SSI) is exempt from levy.
If the IRS cannot collect through your bank account, wages, or Social Security benefits, it may seize physical property. This can include real estate, vehicles, retirement accounts, dividends, and rental income. If a final Notice of Intent to Levy was issued to a business, the IRS may also seize inventory, business equipment, and accounts receivable. The IRS may also levy your state tax refund under the state income tax levy program.
Overall, the IRS can seize anything valuable you own, leaving you with only necessities. Upon receiving a levy notice, taxpayers possess the right to seek a resolution. The levy does not last forever, but you must act quickly to protect your assets.
Types of IRS Intent to Levy Notices
The IRS will not seize your assets without issuing a notice. Instead, it sends several notices of intent to levy, which are expected to be taken seriously. Each notice serves a specific purpose and has a timeline for response for any collection action. The IRS’s intent to levy notices is listed below.
LT11: Notice of Intent to Levy
Letter 11 is the earliest Notice of Intent to Levy from the IRS. It is issued to inform you that the IRS plans to seize your assets to recover unpaid tax. Every taxpayer has a timeframe of 30 days to respond to the notice before collection action kicks off. During this time window, you can request a Collection Due Process (CDP) hearing from the IRS Independent Office of Appeals.
Letter 1058: Final Notice of Intent to Levy
Letter 1058 carries similar weight to LT11 and can be used interchangeably. It is a final notice before the IRS moves forward with collection action. This notice also gives a response time window of 30 days and allows you to appeal through a CDP hearing during the timeframe.
Form 668-A: Notice of Levy on Property
If the IRS believes that your bank account should be levied or any other property should be seized, it issues Form 668-A. The form is sent directly to the financial institution or third party holding your assets. Once the form is received, the assets are frozen and can be legally transferred to the IRS if there’s no resolution.
Form 668-W: Notice of Levy on Wages and Income
Form 668-W is sent to your employer by the IRS employee who is handling your case to begin garnishing your wages. The form often highlights the portion of your earnings that must be deducted and remitted directly to the IRS. Also, remember that the wage levy will remain in place until the full tax debt is paid or a resolution is reached.
CP90: Final Notice of Intent to Levy
CP90 is another version of the final warning letter. It is sent to notify you of the IRS’s plan to enforce a levy and also highlight your appeal rights to a hearing. Similar to Letters 1058 and LT11, you must respond within 30 days of receiving the letter. Failing to act within this timeframe may result in the loss of your right to a CDP hearing, and the IRS may proceed with issuing the levy.
CP297: Final Notice of Intent to Levy (for Businesses)
CP297 is the final levy notice sent to businesses that owe taxes to inform them of imminent collection actions. If your business receives this notice, keep in mind that the IRS may soon garnish your business income or seize assets unless a resolution is reached.
Form 12153: Request for a Collection Due Process Hearing
Form 12153 (Request for a Collection Due Process or Equivalent Hearing) is not a levy notice. It is your tool for responding to a Notice of Intent to Levy. With this form, you’ll be able to exercise your appeal rights to a CDP hearing.
Each of these notices signals that the IRS is preparing for collection enforcement. So you need to take action quickly. If you’re not sure how to respond on your own, this is when you should hire a tax attorney who can help you respond strategically and negotiate a solution with the IRS.
What Happens After a Notice of Intent to Levy Is Issued?
It may have started with a letter. However, don’t assume that the Notice of Intent to Levy is just another piece of mail from the IRS. From the date printed on the notice, the IRS gives you a 30-day grace period to respond, appeal, or resolve the debt.
In case you don’t take corrective action before the deadline, collection efforts can take effect without further warning. The IRS can begin levying your bank accounts, garnishing wages, or seizing assets like your car or home. It can also target our Social Security benefits and retirement accounts.
Additionally, even after receiving a Notice of Intent to Levy, you still have the legal right to request a Collection Due Process (CDP) hearing by filing IRS Form 12153. However, taxpayers must submit the request within the 30-day time window.
It might also interest you to know that missing the time to request a CDP hearing does not leave you out of resolution options. Taxpayers can resolve the issue through an Installment Agreement, an Offer in Compromise, or a Currently Not Collectible (CNC) status. Lastly, if you ignore the IRS after receiving a final Notice of Intent to Levy, you risk losing your right to appeal and may face severe enforcement actions.
Consequences of Ignoring the IRS Notice
Once the IRS crosses that 30-day mark and there’s a response from you, they do not need further permission to begin seizing assets. What started as a letter may result in consequences that may affect your income, property, and long-term financial health. These consequences are:
- Immediate levy action to satisfy the unpaid debt
- Long-term credit damage, which will have a negative influence on your credit score
- Additional penalties and interest that will affect you during future tax periods
- Legal costs and further enforcement
What Should You Do if You Receive a Notice of Intent to Levy?
A very important action we recommend taking after receiving an IRS Notice of Intent to Levy is to act immediately, especially if you have seriously delinquent tax debt. Beyond being a warning, the notice signifies that the IRS is giving you one final chance to resolve the debt before deciding to levy. Let’s break down the steps you should take:
Don’t Ignore the Notice
Ignoring a levy notice is a costly mistake that no taxpayer should make. If the IRS doesn’t get any response regarding the notice, they will go ahead and seize your assets, mostly starting with your wages or bank accounts.
Get a Tax Professional Involved
You don’t have to face the IRS on your own. Tax professionals can be of good help. A skilled tax attorney can assess your situation, identify the best resolution option, and, if need be, represent you in discussions with the IRS.
Explore Resolution Options
Depending on your circumstances, you may qualify for alternative resolution options that will immediately prevent collection and help you settle your debt over time. The different options include:
- Setting up an Installment Agreement: To repay your debt in monthly installments, setting up a payment plan online is a good option. This will help prevent enforced collection.
- Submitting an Offer in Compromise: The IRS may accept a lower amount to settle the debt if you can show the necessary proof that paying your full balance would cause severe financial hardship. This alternative option requires a comprehensive application.
- Applying for Currently Not Collectible (CNC) Status: The IRS may also pause collection efforts if you can fully demonstrate that your current income and expenses are low and you cannot afford to satisfy a tax liability. This is not a form of debt forgiveness. Instead, it buys you time to regain financial stability and halt levies.
- Requesting a Collection Due Process (CDP) Hearing: You have the legal right to appeal a levy notice by filing Form 12153 within 30 days. Submitting the collection due process form puts a temporary stop to IRS collection until the hearing is resolved, giving you a fair chance to present your case.
How Do You Request a Collection Due Process (CDP) Hearing?
To initiate a CDP hearing, you must act fast by filing and submitting IRS Form 12153 within 30 days from the date shown on the issued levy notice. The form gives you room to formally request an equivalent hearing that allows the IRS to pause collection actions while your case is reviewed. Be sure to include all relevant details, including the exact notice you received and why you believe the levy should not proceed.
Once your request is submitted within the required timeframe, the IRS will schedule your hearing with an officer from a department independent of the collections division. This department is called the IRS Independent Office of Appeals. During the hearing, you can go ahead and describe your situation, challenge the proposed levy, and propose an alternative resolution to avoid the actual levy.
You should also keep in mind that one of the most significant advantages of a CDP hearing is that the IRS suspends the levy while your case is under review. So, this means you get no wage garnishments, bank account levies, or seizures until the hearing is resolved.
Can You Stop or Delay a Levy?
Yes, you can stop or delay an IRS levy by responding within the expected 30-day timeframe and presenting a valid reason. The IRS will not wait indefinitely once it sends a Notice of Intent to Levy. If you’re experiencing financial hardship, the IRS may temporarily delay collection by classifying your account as Currently Not Collectible (CNC). With this status, the IRS acknowledges that seizing your income or assets would leave you unable to meet basic living expenses.
Another way to stop a levy is by entering into a payment agreement with the IRS. As long as you stick to the plan, the IRS will not move forward with a levy. Beyond the alternative options, you can decide to appeal the decision if you believe the levy is unjustified or if the IRS made an error. Filing Form 12153 for a Collection Due Process hearing automatically delays enforcement until the appeal is resolved.
Not every levy can be stopped, and the IRS does not approve every request. Outcomes depend on your financial situation, compliance history, and how quickly you act. However, taking action early always increases your chances of a favorable outcome.
How Can a Tax Attorney Help with a Notice of Levy?
A Notice of Levy is a serious IRS enforcement action. It can affect your bank accounts, wages, and other assets. In these situations, having legal representation can make a major difference. In our experience at Victory Tax Lawyers, the IRS is more likely to negotiate when a taxpayer has an attorney involved. An attorney can help you respond quickly, protect your rights, and prevent the levy from escalating.
Our tax attorneys handle levy cases every day. We can intervene by negotiating a levy release, filing appeals, and presenting your case to the IRS on your behalf. We also help taxpayers set up installment agreements, submit Offers in Compromise, or request innocent spouse relief when applicable. In many cases, our attorneys can stop or reduce the levy before it causes major financial harm.
Because levy situations can move quickly, it is important to act early. In our experience, the best outcomes happen when taxpayers contact us before the IRS has already seized assets. If you’ve received a Notice of Levy, we encourage you to schedule a free consultation with Victory Tax Lawyers. We can review your notice carefully and help you choose the best path to resolution.
Why Victory Tax Lawyers Is Different
Unlike general tax firms, we specialize in IRS enforcement and levies. We know which forms stop the IRS fastest and how to negotiate the best outcomes. Our approach is strategic, not just procedural. That’s why our clients often avoid wage garnishment, bank freezes, and prolonged IRS enforcement.
Got a Notice of Intent to Levy From the IRS?
Unlike generic IRS articles, this guide is written by tax attorneys who deal with levy cases every day. We explain not only what the IRS can do, but how enforcement actually unfolds in real cases, and where taxpayers still have leverage. Our framework is based on real levy interventions, not theory.
With over $72 million saved for clients since 2017, Victory Tax Lawyers, a Los Angeles-based tax firm, delivers experienced legal help you can count on to get real IRS solutions. Get the help you deserve. Contact us for a free consultation today!
Frequently Asked Questions
During the process of writing this blog, we encountered some frequently asked questions related to the IRS notice of appointment. We did our best to answer some of them.
Can the IRS Levy Without Notice?
No, the IRS must send you a final Notice of Intent to Levy at least 30 days before taking enforcement action. This way, you can have time to respond or appeal. So, if you don’t receive a notice, the levy is not to be considered valid.
How Long Does an IRS Levy Last?
An IRS levy lasts until your tax debt is paid in full or the IRS releases the levy. The IRS can also remove the levy if you qualify for a payment plan, offer in compromise, or other relief.
How Many Notices Does the IRS Send Before Levy?
The IRS typically sends multiple notices, including reminder letters like the CP503 and a final Notice of Intent to Levy. If these go unanswered, the IRS may then issue a formal Notice of Levy.
What if You Don’t Agree With the Levy Notice?
If you don’t agree with the levy notice, you have the full right to appeal. Use Form 12153 to request a Collection Due Process (CDP) hearing within 30 days of receiving the notice. With the appeal request, you can pause the levy and get a chance to present your case.
Will I Go to Jail Over Unpaid Taxes?
Most unpaid tax cases do not lead to jail time and are handled through collection actions like levies and liens. Jail is usually only a risk in cases involving tax fraud, evasion, or intentional criminal conduct.
