Generally, the IRS cannot levy your income or property until 30 days from the date of the Final Notice of Intent to Levy letter that is delivered via certified mail. Before those 30 days, you have the right to file for ‘Collection Due Process Rights’ where the IRS will have to try and work out a payment plan or some other payment plan with you if they ascertain that you cannot pay what they think you owe.
Before it gets to the Final Notice of Levy, the IRS will usually mail out three to four other letters before it will mail the Final Notice of Intent to Levy. You should take these letters seriously and take action as soon as possible by calling the IRS directly if you want to negotiate with them directly or contacting a tax professional to negotiate on your behalf.
The following are other conditions that have been set forth by the US congress before the IRS can begin a levy.
– Provide a written notice of intent of levy which also explains your right to make an appeal of the levy
– The notice must be personally delivered, sent by mail to your last known address or left at your residence 30 days before they take action
– It must consist of a detailed explanation as to why the levy is been carried out, your collection alternatives and the levy process.
Intent to levy does not mean that the IRS would come to your home and take over it but it means you have neglected past notices to pay taxes and that the IRS is becoming very intent about the collection of payment. A tax levy is a method used by the IRS to collect what you owe them since you are not willing to pay them by yourself. In most scenarios, your bank account will be levied by the IRS as well as your social security, assets, and wages. A tax lien may also be included to your home alongside a tax levy.
But if you do receive ‘intent to levy notice’ from the IRS, it can be scary because it means something has probably gone awry with your taxes and nothing has been done by you to fix the issue. While this may not be a good scenario, you might be able to get back to the good side of the IRS if the right moves are made by you in handling the intent to levy cautiously to ensure that the situation does not get worse.