What You Should Do When You Receive an IRS Notice of Intent to Levy

If you have ignored earlier notices from the IRS urgingassessment of your case. You could try contacting a
you to pay your unpaid taxes or informing you aboutfew to take their opinion. But since time is of the
some errors in the calculation of your taxes, then theessence, it is imperative that you contact them
IRS will start using their heavy weapons. They willimmediately.
send you a Notice of Intent to Levy. This notice simplyYou could also go to the official site of the IRS, to
means that they are tired of talking to you and nowcheck out the meaning and derivatives of all the forms
are ready to take serious action against you byand documents related to your case. Your Tax
choking your financial blood flow.Attorney could also help you to fill out a form known
This basically means that they can snatch away youras the request for collection due process form, which
bank balance, your wages, your assets such as yourentitles you to a meeting with the IRS officer before
car, your boat or your home and also bonds, stocks orany actual action against you is taken. If you do not
life insurance policies which you might have. Forsubmit this form with 30 days, you can still arrange a
example, if a wage levy or wage garnishment as it ismeeting, but your bank account or wage will be frozen.
called is levied, your employer will then have to withholdThe form contains a section, which may allow you to
a large portion of your paycheck, which will bepay your back dated taxes in installments in case you
transferred to the IRS in case you are unable to solveare unable to pay your tax at one go. However, this is
your IRS problems within 21 days.subject to your discussions with your Tax Attorney
In case of a bank levy, your bank manager will beand the IRS officer. These installments will also include
instructed by the IRS to freeze the amount in youryour penalty and interest amounts. There is also one
bank account, which the IRS feels, you owe to them.more section called the 'Offer In Compromise', where
You can still use your bank account to deposit oryou can offer to pay the IRS and amount, which is
withdraw money, but the amount, which youless that the amount that they are demanding from
supposedly owe to the IRS will remain frozen till youyou. One more section is the innocent spouse relief,
can sort out the matter. If you do not sort out yourwhere, if you feel that you are being penalized by the
problem within 30 days, then that amount will getIRS because of actions take by your spouse or
transferred to the IRS, which will make it more difficultex-spouse, then that too can be explained to the IRS
to get back.in this section.
So, the first thing to do, once you do get a Notice ofIn case you feel that the IRS has made an error in
Intent to Levy is to contact your tax attorney or if yousending you the Notice of Intent to Levy and that you
are able to handle it yourself, then directly contact thedo not owe them any money, then you will have to
IRS. The intent is to make it clear to the IRS that youcontact your Tax Attorney and he can direct you to
are serious about resolving the problem as soon astake the matter to court, depending on your case. This
possible. In case you cannot pay your taxes due to ancan mean a long drawn battle and should be
extreme reason such as bankruptcy or a seriousconsidered only as a last step.
illness in your immediate family, then those relevantSo, whatever your strategy, it is very important to get
documents have to be submitted to the IRS. Your Taxinto action the minute you receive the Notice of Intent
Attorney will be able to show you the correct way outto Levy from the IRS. Going slow is going to only harm
once he knows the details of your case. There areyou and make the case of the IRS even stronger.
many attorneys who are willing to do a free