IRS LEVY

Receiving an Intent to Levy notice from the IRS is a scary situation. This means that something has went terribly wrong with your taxes, and that you have yet to do anything to fix the problem. Even though this is a bad situation, if you make the right moves and handle the Intent to Levy carefully you may be able to get back in the good graces of the IRS so that things do not progress any further.

An Intent to Levy does not mean that the IRS is going to show up at your house, kick you out, and take your stuff. But it does mean that you have ignored past notices to pay past due taxes, and that they are now getting very serious about collecting. You should not ignore an Intent to Levy, but it is not time to panic just yet either. If you know your rights, and look deeper into your situation, you will probably find that you can get into the good graces of the IRS once again by taking a few steps on your own or by working with a tax professional.

A tax lien can be attached to your home in conjunction with a tax levy. In most cases, the IRS will levy your bank account (bank account levy), wages, social security, and other assets. This means that the IRS is more or less taking what you owe because you are not willing to give it to them.

How can you prevent a tax levy? The best way to do this is to get in touch with the IRS and come to an agreement on how you are going to pay them back. This is where Barouti Financial Services comes in. We will work with the IRS to find a solution and prevent the levy from going forward. For example, we can help you reach an IRS Installment Agreement or submit an Offer In Compromise. This will slow down the levy process, and may stop it in its tracks if you begin to pay your back taxes.

Here are a few types of Intent to Levy notices that the IRS sends out:

CP 297/CP 90– Final Notice of Intent to Levy & Notice of your Right to a Hearing;
CP 523 – Notice of Intent to Levy – Defaulting on your Installment Agreement.
Letter 1058 / LT11 - Final Notice of Intent to Levy and Notice of Your Right to a Hearing
CP 91/CP 298 - Final Notice Before Levy On Social Security Benefits
CP 297 / CP 90 is used to notify the person that there is an unpaid balance that the IRS has previously requested to be paid and that IRS intends to levy federal payments due to you (like Social Security benefits)

CP 523 is for those who were paying via an installment agreement but defaulted. This notice explains the reason for the default, to notify the intent to levy, and to offer options for stopping this process.

CP 91/CP298 - Is sent to taxpayers with a balance after previous letters were sent letting them know that a 15% levy on social security benefits will take effect unless the balance is paid off or a payment agreement is setup of some sort. CP 90 / CP 297 usually preceeds this letter.

Normally, L1058/LT11 follows a CP 504, or a Final Notice Balance Due letter. An L-1058 states that you have a balance still that you have not addressed after previous notification letters, and that the IRS after 30 days will issue a levy on your personal assets.

If you receive an Intent to Levy you should immediately contact us to initiate a review with the IRS. We will take immediate action on your behalf and secure your financial future.