Intent To Levy Notice Template for the United States

When the IRS determines that other collection methods have failed, they may issue an Intent To Levy Notice as a formal warning of impending enforcement action. This document serves as your legal notice that the Internal Revenue Service intends to seize your property, bank accounts, wages, or other assets to satisfy unpaid tax obligations. Understanding this notice is crucial because it triggers important deadlines and rights that can significantly impact your financial situation.

When do you need this document?

You will receive an Intent To Levy Notice when you have unpaid federal taxes and the IRS has exhausted other collection efforts, such as billing notices and payment plan offers. This typically occurs after you have ignored multiple collection notices over several months or years. The notice is also required before the IRS can levy certain types of property, including your primary residence, retirement accounts, or disability payments. If you are a tax professional or legal representative, you may need to review or draft responses to these notices on behalf of clients facing levy action. Third-party holders like banks or employers may also receive these notices when they hold property belonging to a taxpayer with outstanding tax debt.

Key legal considerations

The most critical aspect of an Intent To Levy Notice is the 30-day deadline to request a Collection Due Process hearing. Missing this deadline can result in the loss of significant legal protections and your right to challenge the proposed levy before it occurs. The notice must include specific information such as the amount of tax owed, your rights under the law, and procedures for requesting a hearing. You should carefully verify that the tax liability is accurate and that proper procedures have been followed. Consider whether you qualify for innocent spouse relief, currently not collectible status, or an installment agreement. The IRS cannot proceed with certain levy actions, such as seizing your primary residence, without obtaining court approval, regardless of the notice.

Legal requirements in United States

Under Internal Revenue Code Section 6331 and related Treasury Regulations, the IRS must provide at least 30 days' notice before levying most types of property. The notice must be given in person, sent by certified mail to your last known address, or left at your dwelling or usual place of business. The IRS Restructuring and Reform Act of 1998 enhanced taxpayer protections by requiring Collection Due Process hearings and expanding the types of property exempt from levy. Fifth Amendment due process rights ensure that you cannot be deprived of property without proper legal procedures. The notice must clearly explain your right to request a hearing with the Office of Appeals, your right to propose alternative collection methods, and your right to representation. Specific formatting and content requirements under Treasury Regulations must be met for the notice to be legally valid.