Quick overview

A Notice of Intent to Levy is one of the IRS’s final collection steps. The notice tells you the taxes the IRS says you owe, explains the action the IRS plans to take (for example, levying bank accounts or wages), and notifies you of your right to a hearing before the levy occurs. Federal law requires that the IRS give you advance written notice and an opportunity for a hearing before most levies. For official IRS guidance, see the IRS pages on understanding notices and levies (IRS.gov) and Collection Due Process hearings (IRS.gov).

Why this notice matters now

If you receive this notice you have limited time to act. The IRS generally must wait at least 30 days from the date on the final notice to begin a levy, and during that period you can: request a Collection Due Process (CDP) hearing, propose an installment agreement, submit an Offer in Compromise, or provide proof that the assessed liability is incorrect. Filing the appropriate appeal or negotiating an arrangement can prevent seizure and limit additional costs.

How the formal process works (step by step)

  1. Assessment and demand
  • The IRS assesses tax and sends earlier notices (e.g., CP14, CP504) demanding payment.
  1. Final notice issued
  • If unpaid, the IRS issues a “Final Notice of Intent to Levy and Notice of Your Right to a Hearing.” This final notice is commonly referred to as a Letter LT11 or CP90; it gives at least a 30‑day period before levy action. See IRS collection procedures for details (irs.gov/collections/levy).
  1. Actions you can take during the 30‑day period
  • Request a CDP hearing by filing Form 12153. Timely filing generally stops levy action while the appeal is pending.
  • Apply for an installment agreement (Form 9465 or online payment agreement) or submit an Offer in Compromise (Form 656) if eligible.
  • Provide proof of full payment, bankruptcy filing, or other facts that stop collection.
  1. Levy enforcement
  • If no timely response or resolution, the IRS can levy wages, bank accounts, accounts receivable, and certain federal/state payments. Some items are exempt or partially protected — check IRS guidance.

Common situations that lead to this notice

  • Unpaid individual income tax or payroll tax balances left unaddressed after multiple notices
  • Unfiled tax returns where assessments were made using available income records
  • Failure to respond to IRS collection notices

In my work representing taxpayers, the most common triggers are unfiled returns and missed payroll tax deposits for small businesses. Those situations escalate quickly because penalties and interest compound and the IRS treats payroll taxes with high priority.

What the notice looks like and what to read first

When you open the notice, immediately check these items:

  • Date of the notice (the 30‑day clock starts here)
  • Amount the IRS says you owe (tax, penalties, interest)
  • Tax years or assessment periods covered
  • Instructions for requesting a Collection Due Process hearing (including Form 12153) and the address or fax to send it
  • Any phone number or local office information for collection specialists

Do not ignore the notice — the clock starts on receipt.

Practical, prioritized actions to take (professional playbook)

  1. Keep the letter and verify receipt date. If mailed, the IRS assumes you received it within a set number of days; saving the document protects you later.
  2. File Form 12153 (Request for a Collection Due Process or Equivalent Hearing) within the 30‑day window if you want to appeal the levy or raise collection alternatives. A timely CDP request generally halts levy activity while appeals proceed (see IRS: Your Right to a Collection Due Process Hearing).
  3. If you agree you owe the tax but cannot pay in full, request an installment agreement (apply online or file Form 9465). Consider the Online Payment Agreement portal on IRS.gov for faster processing.
  4. If you have little or no ability to pay, consider applying for an Offer in Compromise (Form 656) — a tested alternative for eligible taxpayers; learn more at our guide, “What Is an Offer in Compromise? Eligibility, Process, and Alternatives.”
  5. If the levy has already hit a bank account or paycheck, act immediately: contact the IRS collection officer listed on the notice, consult a tax professional, and consider an administrative request for release based on financial hardship or exempt income.

Internal links for relevant relief options:

What a Collection Due Process (CDP) hearing can and cannot do

A CDP hearing before the IRS Office of Appeals lets you challenge the levy or collection action, raise spousal defenses, or propose an alternative to full collection (installment agreement or Offer in Compromise). It is not the place to relitigate a previously contested tax liability that was decided by a prior tax court or collection due process hearing. Requesting a CDP hearing is a key legal right that, if used in time, can stop levy enforcement while Appeals review the case (see IRS Appeals and CDP guidance).

Common mistakes to avoid

  • Waiting until the levy is enforced to contact the IRS. Once a levy garnishes wages or drains a bank account, reversing the damage is more difficult.
  • Believing a levy means bankruptcy is the only option. Many taxpayers successfully negotiate installment agreements or Offers in Compromise.
  • Not keeping records of all communications, offers, and payments. Documentation matters if you later contest timing or compliance.

If a levy has already occurred

If funds or wages have already been seized, options include:

  • Requesting a Collection Due Process hearing if the 30‑day window is still open.
  • Submitting a Collection Appeal Request (Form 9423 is for release? — note: specific forms vary by levy type; check IRS instructions) and asking for a levy release for undue hardship.
  • Proving that funds seized were exempt income (for example, certain federal benefits). For guidance on what is exempt, see IRS levy exemptions.

Because the exact paperwork can differ by levy type and situation, consult a tax professional promptly when a levy is already enforced.

Timeline recap (concise)

  • Prior notices and demand for payment: weeks to months before final notice
  • Final notice (Notice of Intent to Levy): starts the 30‑day clock
  • Within 30 days: request CDP, negotiate payment, or submit proof to stop the collection
  • After 30 days without resolution: IRS may levy assets

Documentation you’ll likely be asked to provide

  • Recent bank statements and proof of exempt income
  • Pay stubs and proof of household expenses
  • Tax returns for the years in question
  • Proof of filing or payment plans already in progress

Prepare these documents before contacting the IRS. In my practice, having a complete financial package when you call the IRS speeds negotiation and improves outcomes.

Sources and further reading

Professional note and disclaimer

In my work advising taxpayers for over 15 years, early engagement with the IRS and careful documentation almost always reduces the risk of seizure and minimizes additional penalties. This article is educational and does not substitute for personalized legal or tax advice. For advice specific to your case, consult a licensed tax professional or an attorney experienced in tax controversies.