Intent to Levy
Understanding Intent to Levy: How a Lawyer Can Help You
When you receive an IRS letter or notice titled “Intent to Levy,” it’s normal to feel a sense of panic. This type of communication signifies that the IRS intends to take serious action to collect overdue taxes from you. However, there’s no need to face this situation alone. With the right legal assistance, you can address these concerns head-on and protect your assets.
What Is an Intent to Levy?
An “Intent to Levy” notice is a formal warning issued by the Internal Revenue Service (IRS) to taxpayers who have unpaid tax liabilities. This notice is part of the IRS’s collection efforts and indicates that the agency is preparing to seize assets such as your bank accounts, wages, or even personal property to satisfy your debt. The letter is often accompanied by a 30-day deadline in which you must respond or resolve the issue, or else the IRS may proceed with collection actions.
At this stage, the IRS has already made several attempts to collect the debt, but for one reason or another, you may have missed those notices, or the situation may have escalated without your awareness. It’s crucial to understand that the “Intent to Levy” notice does not mean the IRS has immediately begun seizing your property—it’s a warning to give you time to take action.
Why the IRS Issues an Intent to Levy
The IRS typically reserves the “Intent to Levy” notice for taxpayers who have been non-compliant for a significant period of time. The agency may have sent you multiple notices asking you to pay your taxes, but if you haven’t responded or taken action, the IRS will move to the next step.
Some of the common reasons why the IRS may issue this notice include:
- Failure to pay taxes: You may have unpaid tax liabilities that have not been resolved.
- Failure to file returns: If you haven’t filed your tax returns, the IRS may issue this notice.
- Failure to respond to prior communications: If you haven’t responded to previous notices or requests from the IRS, they may escalate their collection efforts.
- Unpaid penalties: In addition to your taxes, the IRS may be seeking to collect penalties and interest.
The Effects of an Intent to Levy
The consequences of an IRS levy are significant, so it’s essential to address the situation promptly. If the IRS follows through on the levy, it can seize assets such as:
- Bank accounts: The IRS can take funds directly from your bank account, including savings or checking accounts, to pay off your debt.
- Wages: The IRS can garnish your wages, taking a portion of your paycheck before you even see it.
- Personal property: In extreme cases, the IRS may seize valuable personal property, such as vehicles, jewelry, or real estate.
An IRS levy is not only an inconvenience, but it can also seriously disrupt your financial stability. You might not have the cash to pay off the full amount of taxes due, and your income or assets may be significantly affected. The sooner you act, the better your chances of avoiding these severe consequences.
Steps to Take When You Receive an Intent to Levy Notice
If you receive an Intent to Levy notice, the first thing you need to do is take it seriously. It’s vital to avoid ignoring the notice or hoping that the IRS will go away. There are several steps you can take to address the situation:
Understand the Notice
Read the “Intent to Levy” notice carefully. It will explain why the IRS is taking this step, how much you owe, and what your options are. It will also provide a timeline, typically giving you 30 days to respond before the levy action begins.
Contact the IRS
You can contact the IRS directly to discuss the situation. It’s important to be proactive and respond to the notice within the given timeframe. You can try to negotiate a payment plan, offer in compromise, or request a delay in collection if you are currently facing financial hardship.
However, negotiating with the IRS on your own can be complicated and may not always lead to a favorable outcome. That’s where legal assistance comes in.
Evaluate Your Options
There are several ways to resolve your tax debt, and it’s crucial to assess all of them. Options may include:
Payment Plans: The IRS may be willing to set up a payment plan, allowing you to pay off your debt in installments.
Offer in Compromise (OIC): An Offer in Compromise allows you to settle your debt for less than the total amount owed if you can prove that paying the full amount would cause financial hardship.
Currently Not Collectible Status: If you are experiencing severe financial difficulties, the IRS may temporarily halt collection efforts.
Bankruptcy: In some cases, filing for bankruptcy may discharge certain tax liabilities, although this option has strict requirements.
Evaluate Your Options
At this stage, it’s advisable to consult a lawyer who understands tax law and can help you navigate your options. Attempting to negotiate with the IRS without proper knowledge and guidance can lead to mistakes that may cost you in the long run. A lawyer can review your case, provide insight into the best course of action, and represent your interests in dealing with the IRS.
How a Lawyer Can Help You With an Intent to Levy
Navigating the IRS collection process can be overwhelming, especially when you receive an “Intent to Levy” notice. A lawyer can play a crucial role in helping you handle the situation. Here are some ways a lawyer can assist:
Assessment of Your Situation
A tax lawyer can evaluate your specific case and determine the best course of action based on your circumstances. They will assess your financial situation, tax history, and any prior IRS communications to create a strategy tailored to your needs.
Negotiating with the IRS
One of the primary benefits of hiring a lawyer is that they can represent you in negotiations with the IRS. They can help you reach a favorable agreement, whether it’s setting up a manageable payment plan, negotiating an Offer in Compromise, or seeking temporary relief from collection actions.
Filing Appeals
If you disagree with the IRS’s actions or believe they’ve made an error in your case, a lawyer can file an appeal on your behalf. This legal process can provide an opportunity to contest the levy and work towards a more favorable resolution.
Stopping Levies
A lawyer can work with the IRS to stop a levy or garnishment before it happens. In many cases, they can intervene and request a delay in the collection process, giving you more time to resolve your tax issues or to secure a payment plan.
Protecting Your Rights
Dealing with the IRS can be intimidating, but a lawyer will ensure that your rights are protected throughout the process. They will make sure that you aren’t subject to unfair practices or excessive penalties and that any actions taken by the IRS are within the law.
How Witherspoon Law Office Can Help
If you’ve received an “Intent to Levy” notice from the IRS, you don’t have to face it alone. The IRS collection process is complex, and it’s essential to have an experienced attorney on your side. With the help of a knowledgeable lawyer, you can explore options to resolve your tax debt, protect your assets, and put an end to IRS collection actions.
Witherspoon Law Office has the experience and dedication to help you navigate this challenging situation. Our team is committed to protecting your rights and ensuring that you have the best chance of a favorable outcome. Don’t wait until the IRS takes action against your assets—contact Witherspoon Law Office today to schedule a consultation and begin working toward a resolution.