What To Do If You Receive the Final Notice of Intent to Levy From the IRS?
I’m continuing to meet with more clients who have felt the IRS step up collections over the past few months. A few months ago, we were seeing the IRS sending the CP504 notice. That notice gives the IRS the ability to file a Federal Tax Lien over the taxpayer’s assets as well as the right to Levy their State Tax Refund.
When the taxpayer does not respond to the CP504 notice in a manner that is timely and acceptable to the IRS (such as setting up an acceptable arrangement), the IRS will next send a Final Notice of Intent to Levy. This notice may come as an LT11 or Letter 1058. While they have different numbers and come from different parts of the IRS, they are the same impact on delinquent taxpayers.
What Does the “Final Notice” allow the IRS to do?
If a Taxpayer does not respond to the “Final Notice” within 30 days and set up an acceptable payment arrangement with the government, the IRS now has the ability to file a Notice of Federal Tax Lien (NFTL) against the taxpayer. The NFTL gives the IRS the right to levy or seize the assets of the taxpayer to pay-off the taxes due.
Most typically we see this occur with bank accounts getting levied and wages being garnished. However, the IRS has the power to seize homes and property, investment and retirement accounts, assets of a business, and even a portion of Social Security payments. They can create a nightmare for the taxpayer.
What can you do if you receive the “Final Notice”?
You should contact the IRS to resolve your tax issue. There are variety of resolutions including payments plans, settlements, penalty abatement and being classified as currently not collectible, to resolve your issue and stop levies. The final notice of Intent to levy also gives the taxpayer Collection Due Process Rights (CDP rights) including the right to appeal if the IRS does not fairly work with you. There are options to solve your problem so contact the IRS and work with them to come up with a resolution.
Do You Need Professional Help?
If you owe the IRS and are looking for a tax professional to assist you in finding a reasonable and fair solutions to you tax debt, give me a call at (972) 821-1991 or send me an email at [email protected]. Learn more about us at https://jablonskyandassociates.com
