IRS Notice Of Intent To Levy, What Do I Do Now?

"Final Notice of Intent to Levy" the letter says in boldthe Office of Appeals.
font. It arrived today via certified mail in an officialHowever, if you do not submit your request within the
looking envelope indicating it is from the Internalthirty days provided by law, you will not be able to
Revenue Service. Not good news. You haverequest a CDP hearing and the levy will proceed.
successfully ignored all the other letters you haveFortunately you can still request a hearing (the
received nicely asking for payment, but this one isEquivalent Hearing) but it will not stop levy action. Sorry.
different. The tax man is now doing more than asking,Checking block six can't hurt, it can only help. If you
he is now going to take, and take a lot.have submitted the Form 12153 within 30 days, block
What can you do now? How about read the Unitedsix really does not apply. If you submit later than thirty
States Constitution - you know, the document drafteddays it is vital.
so many years ago by men so far away in a smallBlock seven is also vital but it can be a little confusing.
convention hall in Philadelphia in the late 1700's.Let's start with the block titled "My Spouse is
Amendment number five of the Bill of Rights to beResponsible." This involves "Innocent Spouse Relief" a
exact. "No person shall...be deprived of life, liberty orconcept which is beyond the scope of this article. If
property without due process of law..." This actuallyyou feel that you are being unfairly targeted by the
means something. These are more than just wordsIRS for a tax debt that legitimately belongs to your
mumbled in your high school social studies course!spouse or ex spouse, do additional research on
They mean that the IRS cannot take your stuff unlessInnocent Spouse Relief and check this block. If you are
and until it provides you with due process of law. Whatnot married or if you are married and responsible for
the heck does that mean? That is simple - notice andthe debt, then leave the block unchecked.
a hearing. You have received the notice today viaMoving on to the space marked "Lien." Since you have
certified mail. Yes, the mail you received today is thenot received a notice of lien, but rather a notice of levy,
first leg of the IRS complying with your Constitutionalthis block does not apply to you at this time.
rights to due process of law before they take yourThe first block in section 7 has two simple choices -
stuff.Installment Agreement and Offer in Compromise.
The second leg, a hearing, is vitally important and mustCheck both. This indicates to the IRS that you cannot
be understood. If you look inside the envelopefully pay the tax debt now and you want to be
containing your notice of levy you will find IRS Formconsidered for either an Installment Agreement or an
12153, Request for a Collection Due Process (CDP)Offer in Compromise. If you are like most taxpayers,
Hearing or Equivalent Hearing. The IRS is required byyou certainly cannot pay the full amount now and at
law to send you this form and an explanation of whatbest can pay some of it over time. Alternatively, you
it means. If this form is not there go to the IRS websitemight want to offer the IRS some amount less than
at and look under Forms and Publications. Downloadthe full extent of what you owe. That is called the
the form and instructions. This form is your bestoffer in compromise. By mailing this to the IRS within
defense against the IRS taking your stuff today. Bythirty days, you will stop the levy action and give
filling it out, you are exercising your Constitutional rightyourself the opportunity to discuss the debt with an
to be heard by a neutral hearing officer before yourIRS representative.
bank account is emptied.If you mail it later than the thirty day window, then you
Have you found the form? Yes? Good. Fill it out andwill be requesting an Equivalent Hearing and not a CDP
mail it in. The front of the form is quite easy containinghearing. While the actual meeting and hearing are
basically personal information that you should be easilybasically the same, the single important difference is
able to provide. The back is a little more complicatedthat the IRS will continue with their levy action. You can
with blocks marked Installment Agreement, Offer intry to stop the levy action by contacting the IRS and
Compromise, Innocent Spouse.discussing a 120 day hold on the levy while you go
In block 5 under Basis for Hearing Request markthrough the hearing process. The IRS is not bound by
Proposed Levy or Actual Levy. Block 6 should belaw to put the levy on hold for 120 days, but if you can
checked as well. This requires some explanation.present a good reason for failure to pay your taxes,
There are two types of hearings that are available tothey may stop the levy to give you time to explore
you depending upon when you are filling out the form -collection alternatives with the hearing officer.
(1) the CDP Hearing and (2) the Equivalent Hearing.All of the above presumes that you do not dispute the
The CDP hearing is by far the better of the two. Youfact that you owe the money. However, if you feel
have thirty days from the date of the Notice of Intentthat the IRS has made an error and that you do not
to Levy to request a CDP hearing. If you submit yourowe what they claim you do, then there are other
request on time, i.e. within that thirty day window, theavenues, in addition to the above that you should
IRS is prohibited from taking your stuff. The levy willpursue. Those avenues are outside the scope of this
stop and you will be provided the opportunity toarticle.
discuss your case with a neutral hearing officer form