If You Get a Notice of Intent to Levy: Immediate Actions

Immediate steps to take (first 24–72 hours)

1. Keep the notice and read it carefully. The IRS mail will include the amount due, the tax period(s) involved, the date the notice was sent, and a specific deadline—usually 30 days—to request a Collection Due Process (CDP) hearing before a levy. Don’t throw the notice away; it is the key to your appeal rights (IRS: “Levy”).

2. Check the details and verify it’s real. Scammers sometimes impersonate the IRS. The IRS normally initiates collection by mail, not by an unexpected phone call or email. Look for the notice number and the contact phone number printed on the letter; if in doubt, call the number on the notice or the IRS main help line rather than any number provided in a suspicious call or message (IRS: “Contacting the IRS” and “Tax Scams”).

3. Note the deadline. The 30-day window to request a CDP hearing is strict. If you miss it you may still have options, but you lose the automatic stay on collection that a timely CDP request provides. Write the due date on the notice and your calendar immediately.

4. Do not ignore the notice. Inaction often leads to immediate consequences: bank levies, wage garnishments, or seized assets. Timely response preserves options.

If the levy hasn’t happened yet: use your 30 days wisely

• Request a Collection Due Process (CDP) hearing. A timely CDP request stops most levies while the IRS Appeals Office reviews your case. The notice tells you how to request the hearing. In my practice, successful CDP requests buy the time you need to negotiate a plan or present hardship evidence (IRS: “Appeals Collection Due Process”).

• Assemble documentation. Typical documents the Appeals officer will want include the notice itself, recent pay stubs, bank statements, copies of recent tax returns, and a month-by-month budget showing essential expenses. Be factual and organized—Appeals deals in documentation more than emotion.

• Consider immediate payment or partial payment if you can. Full payment ends the enforcement process; a partial payment may persuade the IRS to delay or release a levy if it shows good faith.

• Explore short-term payment tools. If paying by credit card or through a trusted loan avoids an immediate bank levy that would cause greater harm, weigh the costs versus the damage of an actual seizure. In my experience, avoiding a bank levy that leaves a family without funds can justify short-term credit while you negotiate.

Options to propose during the hearing or when contacting the IRS

• Installment agreement. Many taxpayers prevent levies by agreeing to monthly payments. For details about types of installment agreements and eligibility, see our guide on Installment Agreements: “Installment Agreements: Types, Costs, and How to Apply” (FinHelp).

• Offer in Compromise (OIC). If you can show you cannot pay the full amount, an OIC may settle the debt for less than the full balance. OICs require a solid financial package and are scrutinized carefully (IRS: “Offer in Compromise”). For practical walkthroughs and eligibility tips, see our OIC resources like “What Is an Offer in Compromise and How It Works” (FinHelp).

• Currently Not Collectible (CNC) status. If you can demonstrate that collection would create immediate financial hardship, request CNC. This doesn’t erase the debt but pauses collection and levies while your financial situation is critical.

• Administrative relief or levy release. If the levy would cause immediate economic hardship (for example, seizing funds needed for rent, utilities, or basic living expenses), ask the IRS agent or appeals officer for an immediate release. Have evidence—bills, eviction notices, or medical documents—ready.

If a levy already occurred

• Don’t panic. There are clear steps to try to recover funds or stop further action.

• Contact the IRS and request a levy release. Ask for immediate release if you can demonstrate financial hardship. The notice itself should list a contact; calling the number on the notice is usually fastest.

• File for a CDP hearing if you are still within the 30-day window from the notice date (if not, you may have other appeal options, such as filing a Collection Appeal Request or arguing to the IRS Office of Appeals under olr scenarios). If the levy was made before an appeal could be heard and the IRS did not follow proper procedures, Appeals can sometimes order funds returned.

What to gather before contacting the IRS or a professional

• The notice and any prior IRS notices.
• Most recent tax returns.
• Proof of income: pay stubs, 1099s, business statements.
• Bank statements for the last 2–3 months.
• A detailed monthly budget: rent/mortgage, utilities, child care, health care, transportation, and any secured debt.
• Documentation of special circumstances: recent job loss, serious illness, or unusual expenses.

How to contact and speak with the IRS (script and tips)

• Use the phone number on the notice or 1-800-829-1040 for general help; the notice will often specify an IRS collections number. Always confirm the number printed on the letter rather than trusting a caller who claims to be the IRS.

• Be concise and factual. Example script: “I received Notice [notice number] dated [date]. I want to request a Collection Due Process hearing and I need to discuss immediate options to avoid a levy. Can you tell me the steps and the documentation required?”

• Ask for the representative’s name, badge number, and phone number for follow-up. Take notes and confirm any agreements in writing.

When to get professional help and how to choose a representative

• Get a tax attorney if you face potential criminal exposure or complicated legal issues.

• Use a CPA or an Enrolled Agent (EA) for negotiating with IRS collections, setting up installment agreements, or preparing OIC packages. In my practice, early engagement with an experienced EA or CPA often reduces the risk of a damaging levy and accelerates the negotiation process.

• Verify credentials and fee structures. Be cautious of firms that demand large upfront fees or promise guaranteed results. You can authorize a representative using IRS Form 2848 (Power of Attorney) so they can talk to the IRS on your behalf.

Red flags and common mistakes to avoid

• Don’t send money to a third-party service that claims it will stop levies immediately without a clear plan or written agreement.
• Avoid ignoring the notice hoping it will go away. That is the most common and costly mistake.
• Don’t miss deadlines—especially the 30-day CDP window. Missing this window often removes the automatic stay on collection.

Protecting your accounts and planning for next steps

• If your bank account is at immediate risk, move non-exempt funds into accounts the IRS cannot lawfully seize (for example, certain retirement accounts may be protected) only after confirming protections with counsel. Be careful—transferring assets to hide them could create legal problems. In many cases, transparency and negotiation are the safer routes.

• Rebuild your plan: whether you enter an installment agreement, obtain CNC status, or secure an OIC, remain current on future taxes to avoid reopening collection actions.

Scams and impersonation warnings

• The IRS communicates by mail for initial collection notices. Phone calls that demand immediate payment via gift cards or wire transfers are scams. Report impersonation to the Treasury Inspector General for Tax Administration (TIGTA) and the Federal Trade Commission; see IRS guidance on tax-related scams.

Useful FinHelp resources (internal links)

• Installment agreement basics and how to apply: Installment Agreements: Types, Costs, and How to Apply
• Offer in Compromise overview and practical steps: What Is an Offer in Compromise and How It Works

Authoritative sources and further reading

• IRS — Levy overview and procedures: https://www.irs.gov/businesses/small-businesses-self-employed/levy
• IRS — Appeals: Collection Due Process (CDP): https://www.irs.gov/appeals/collection-due-process
• IRS — Offer in Compromise: https://www.irs.gov/payments/offer-in-compromise
• IRS — Scams and Consumer Alerts: https://www.irs.gov/privacy-disclosure/report-phishing

Final notes and professional disclaimer

In my 15+ years helping taxpayers, the single most important action after receiving a Notice of Intent to Levy is to act — and to document that action. A timely Collection Due Process request or an honest, documented negotiation with the IRS will often stop a levy long enough to find a workable solution. This article is educational and not individualized legal or tax advice. For advice tailored to your circumstances, consult a licensed tax professional, CPA, enrolled agent, or tax attorney.