Immediate steps to take after you receive a Notice of Intent to Levy

Receiving a Notice of Intent to Levy is stressful, but there are clear, time-sensitive actions that can protect you and improve the outcome. In my 15 years advising clients on collection matters, the most important pattern I’ve seen is this: prompt, organized response preserves options. The IRS will usually give you 30 days to act — miss that deadline and the agency can move to seize assets or garnish wages.

1) Read the notice carefully and verify it

  • Confirm the notice is genuinely from the IRS. The notice header will say something like “Final Notice — Notice of Intent to Levy and Notice of Your Right to a Hearing.” Scams exist, so verify details at IRS.gov/levy (IRS). If anything looks suspicious, call the IRS or your tax professional before sharing sensitive information.
  • Note the date, the specific tax periods, and the amount claimed due. The notice will also explain the deadline for requesting a hearing.

2) Don’t ignore the deadline — you usually have 30 days

You generally have 30 days from the date on the notice to request a Collection Due Process (CDP) hearing or file an appeal. Timely filing of Form 12153 (Request for a Collection Due Process or Equivalent Hearing) is the primary way to preserve the right to a hearing. Filing timely can stop most levy actions while the appeal is pending (see IRS appeals/collection due process rights).

What filing Form 12153 does and does not do:

  • Does: preserves your right to an appeal and typically halts most levies while Appeals reviews your case.
  • Does not: automatically forgive the tax. You still need to present defenses or propose a resolution (installment agreement, offer in compromise, etc.).

Reference: IRS guidance on Collection Due Process rights (irs.gov/appeals/collection-due-process-rights) and Notice of Levy basics (irs.gov/levy).

3) Gather the necessary documents quickly

Collect financial information so you can discuss realistic solutions with the IRS or an advisor:

  • Recent pay stubs, bank statements (30–90 days), and proof of other income.
  • Monthly bills: rent/mortgage, utilities, car payments, insurance, child support.
  • A simple asset list: checking/savings, retirement balances, vehicles, investments.
  • Any correspondence previously sent to or received from the IRS.

Having a one-page budget (income vs. monthly essential expenses) speeds negotiations and helps you decide on installment agreements or other relief.

4) Decide which resolution path to pursue

Common options that stop or avoid a levy:

  • Request a Collection Due Process hearing (Form 12153) — preserves appeal rights and usually pauses levy while Appeals considers your case.
  • Negotiate an Installment Agreement — if you can pay over time, you can often stop collection actions by entering a current, approved payment plan.
  • Submit an Offer in Compromise — a settlement that lets you pay less than you owe if you meet strict eligibility criteria. Preparing a competitive offer requires a full financial package; see our guides on Offers in Compromise for qualification and documentation.
  • Internal resources: “Offer in Compromise: Qualifying, Applying, and Pitfalls” and “Preparing an Offer in Compromise: Worksheets and Documents.”
    (finhelp.io links below).
  • Seek Currently Not Collectible (CNC) status — if your essential living expenses exceed your ability to pay, the IRS may temporarily suspend collection.
  • Pay the debt in full — stops the process immediately when full payment is received and processed.

Choose based on affordability, how long the IRS would pause collection, and the likelihood of acceptance. In my practice, when clients have borderline ability to pay, a short-term installment agreement plus a promise to file timely future returns is the fastest way to stop a levy.

5) How to request a Collection Due Process hearing (Form 12153)

  • Complete Form 12153 and submit it by the deadline shown on the notice (usually 30 days). Send it to the address on the notice.
  • Prepare a brief statement explaining why you dispute the levy or why collection should be deferred (financial hardship, wrong liability, etc.).
  • Attach documentation that supports your position (pay stubs, bank statements, medical bills, proof of dependents).

Filing Form 12153 timely usually stays levy actions while Appeals reviews the case. If you miss the 30-day CDP window, you may still be able to pursue other administrative remedies or go to court in limited cases, but options narrow significantly.

6) Practical negotiation tips when you contact the IRS

  • Be calm and organized: state your name, SSN/ITIN, and the notice ID. Ask to speak with the assigned revenue officer or the phone number listed on the notice.
  • Ask what will stop the levy immediately: typically full payment, an approved installment agreement, an accepted Offer in Compromise, or a timely CDP request.
  • Offer a realistic payment amount supported by your documentation. If negotiating an Installment Agreement, confirm whether the IRS will accept direct debit and whether penalties/interest will continue to accrue.

Sample script opener when calling the IRS:
“Hello, my name is [X]. I received a “Notice of Intent to Levy” dated [date]. I want to resolve this and would like instructions for submitting Form 12153 and discussing installment options with the assigned revenue officer.”

7) Documentation checklist to bring to a meeting or hearing

  • Form 12153 (if requesting CDP), and copies of the notice.
  • Detailed monthly budget and recent paystubs (2–3 months).
  • Bank statements (last 3 months).
  • Recent tax returns and proof of filing for any unfiled years.
  • Letters verifying extraordinary expenses (medical bills, eviction notices).
  • Business records, if self-employed (profit/loss, recent deposits).

A well-prepared packet speeds decisions and builds credibility with the IRS or Appeals officer.

8) Common mistakes to avoid

  • Waiting past the 30-day deadline — this is the most costly error.
  • Calling without documents — vague promises rarely get accepted.
  • Assuming you can’t negotiate — the IRS has multiple collection alternatives and often prefers a workable payment plan to forced collection.
  • Relying solely on third-party firms that promise quick fixes — always verify credentials and never pay for a relief that requires fees beyond reasonable representation.

9) When to get professional help

Use a tax attorney, enrolled agent, or CPA experienced in collections if:

  • The liability is large, or you’re at risk of losing a business bank account or major asset.
  • You think the tax debt is not yours, is wrongly calculated, or involves identity theft.
  • You need an Offer in Compromise evaluated — these require detailed financial packages (see our guide on assembling an OIC package).

In my practice, retaining a practitioner early often prevents aggressive collection like levies on bank accounts or wage garnishments. A professional can also negotiate installments, prepare a strong OIC, or file appeals correctly.

10) Real-world example (anonymized)

A small business owner contacted me two weeks after receiving a Notice of Intent to Levy threatening to seize the business checking account. We filed Form 12153 within the 30-day period, submitted a short budget, and negotiated a 12-month installment agreement. The levy was halted while Appeals reviewed the case, and the client avoided a business shutdown. Quick documentation and honest numbers mattered most.

Frequently asked questions (short answers)

  • Can the IRS levy my wages immediately? Not immediately — they must send the formal notice and provide the right to an appeal. After the notice period, levies can begin unless you obtain a stay through a timely appeal or other remedy.
  • Will filing bankruptcy stop the levy? Bankruptcy can stay IRS collection actions, but tax debts have special rules and timing. Speak to a bankruptcy attorney before assuming bankruptcy will solve the issue.
  • Are social benefits like Social Security protected? Certain federal benefits are exempt from levy while the payment is protected, but exemptions and timing can be complex. See IRS guidance and consult a professional before assuming funds are safe.

Useful internal resources

  • Offer in Compromise: Qualifying, Applying, and Pitfalls — finhelp.io/glossary/offer-in-compromise-qualifying-applying-and-pitfalls/
  • Preparing an Offer in Compromise: Worksheets and Documents — finhelp.io/glossary/preparing-a-financial-package-for-an-offer-in-compromise-worksheets-and-documents/

These guides explain the documentation and strategy for preparing a competitive Offer in Compromise or assembling the financial package the IRS will expect.

Authoritative sources and further reading

Professional disclaimer

This article is educational and general in nature. It does not constitute individual tax, legal, or financial advice. Your situation may raise special facts or legal issues — consult a qualified tax attorney, enrolled agent, or CPA to get advice tailored to your case.

If you’d like, I can convert the checklist into a printable one-page packet or draft sample language for Form 12153 and a short budget statement based on your facts.