What Is an IRS “Notice of Intent” and What Should You Do About It?
Quick take: a Notice of Intent from the IRS means the agency plans to take enforced collection action unless you act. This is not the same as a routine reminder; it’s a near-final warning and should be treated urgently.
Why the IRS Sends a Notice of Intent
The IRS issues notices in stages. Early messages (reminders or math error notices) are informational. A Notice of Intent typically appears after repeated unpaid balances, ignored reminders, or failed payment plans. The agency uses these notices to inform you of the specific action it intends to take—commonly a bank levy, wage garnishment, or seizure of assets—while also telling you how to avoid that outcome.
Authoritative sources: the IRS explains common notices and levies on its site (see “Understanding notices received from the IRS” and the page about levies and Collection Due Process rights) (IRS.gov).
What the Notice Usually Includes
Most Notices of Intent will include:
- The amount the IRS says you owe (tax, penalties, interest).
- The specific collection action planned (levy, garnish, or lien enforcement).
- A deadline or date when the action will begin.
- Instructions for contacting the IRS and the right to request a Collection Due Process (CDP) hearing (if applicable).
Exact wording varies. Read the notice carefully; the document itself identifies available options and contact points.
Immediate steps to take (first 72 hours)
- Verify the notice is legitimate. Confirm it’s from the IRS (check return address, official letterhead, and your online account). The IRS sends mailed notices—not text messages or unexpected phone calls asking for immediate payment by gift card. If in doubt, call the IRS at the number on the notice or use the IRS.gov contact pages to verify.
- Don’t ignore it. Ignoring a Notice of Intent is the most common and costly mistake. The IRS may proceed to levy accounts or garnish wages.
- Confirm the balance. Compare the IRS stated balance with your records and recent tax returns. Look for errors (e.g., misapplied payments, identity or reporting mistakes).
- Gather documentation. Bank statements, proof of payments, and correspondence with the IRS are essential if you dispute the debt or request relief.
- Consider your filing and payment history. If you filed late or not at all, corrective filing can sometimes change the debt picture.
Options to stop or limit IRS collection actions
Depending on your situation, these are common remedies:
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Pay the balance in full. Paying the stated debt before the action date is the fastest way to stop a levy.
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Request a Collection Due Process (CDP) hearing. If the notice is a final notice of intent to levy that triggers CDP rights, you can request an appeal to the IRS Office of Appeals where collection action may be suspended while your appeal is pending (see IRS guidance on Collection Due Process) (irs.gov/appeals/collection-due-process-cdp-rights).
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Set up an installment agreement. If you can afford monthly payments, an installment agreement avoids levies once approved. For step-by-step enrollment, see our guide on setting up an IRS installment agreement.
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Apply for Currently Not Collectible (CNC) status. If you can’t pay now and have little or no disposable income, the IRS may place your account in CNC status, temporarily stopping enforced collection while the tax remains due and interest continues to accrue.
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Offer in Compromise (OIC). When you can demonstrate that paying the full tax would cause financial hardship, an OIC may let you settle for less than the full amount. This is strictly reviewed and requires complete financial disclosure (see IRS Offer in Compromise guidance) (irs.gov/individuals/offer-in-compromise).
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Request a levy release for hardship or error. If the Levy would cause immediate financial hardship (e.g., payroll to run or utilities to stop), you can request an expedited levy release. The IRS has established criteria and forms for requesting relief.
Note: In my practice advising taxpayers for 15 years, many urgent levies were avoided by quickly setting up an installment plan or requesting a CDP hearing. Acting in the first 48–72 hours drastically raises the chance of a favorable outcome.
How timelines and rights matter
Some notices trigger legal rights (for example, CDP). If your notice includes language about your right to a hearing, you generally have a limited window to file that request—missing it can eliminate appeal rights and allow the IRS to proceed. Always check the exact dates on the notice.
The IRS typically follows this sequence in collection:
- Initial notice (balance due reminder)
- Repeated notices (CP-series or letters)
- Final Notice of Intent to Levy (may include right to hearing)
- Levy or garnishment
Timing varies by case; don’t rely on generalizations—use the dates on your notice.
Common missteps and how to avoid them
- Ignoring the notice. Consequence: levies, wage garnishment, additional penalties.
- Calling the IRS without records. Consequence: longer calls and missed options. Always have the notice and basic financial records ready.
- Falling for scams. The IRS will never demand payment via gift cards or threaten immediate arrest. Validate the notice and caller using IRS.gov.
Documentation to collect before contacting the IRS or a professional
- The Notice of Intent itself (keep originals).
- Recent tax returns and proof of any payments.
- Pay stubs, bank statements, and lists of monthly expenses.
- Financial statements for businesses, if applicable.
When to hire a tax professional
If the notice includes complex issues (business payroll taxes, significant balances, tax liens, potential criminal exposure, or if you plan to file an Offer in Compromise), bring in an enrolled agent, CPA, or tax attorney. In my experience, cases with payroll tax levies and business seizures benefit most from specialized representation.
How the IRS verifies identity and authenticity
The IRS may require form(s) for representation (Form 2848, Power of Attorney) if you want someone to speak for you. Scams and identity-theft issues are common; if you suspect identity theft, follow IRS Identity Theft procedures immediately (irs.gov/identity-theft).
Sample scenario (real-world, anonymized)
A client (Sarah) ignored repeated notices and then received a Notice of Intent to levy her bank account. Within 48 hours we: verified the balance, set up an installment agreement online, and requested a temporary hold while installment paperwork posted. The IRS released the immediate levy and the client avoided wage garnishment. Fast action matters.
Another case (Mark), a small-business owner, received a payroll-tax-related Notice of Intent. Payroll taxes are high-priority and treated harshly. We negotiated a short-term payment plan and prioritized payroll deposits to stop future enforcement.
Scams to watch for
Scammers impersonate IRS agents using urgent language. Red flags include requests for payment by gift card, prepaid debit cards, or cryptocurrency; threats of immediate arrest; or caller ID spoofing. Always verify with IRS.gov and the number shown on your mailed notice.
Useful IRS resources
- Understanding notices received from the IRS: https://www.irs.gov/newsroom/understanding-notices-received-from-the-irs
- Levy information and release criteria: https://www.irs.gov/businesses/small-businesses-self-employed/levies
- Collection Due Process (CDP) rights: https://www.irs.gov/appeals/collection-due-process-cdp-rights
- Installment agreements: https://www.irs.gov/payments/installment-agreements
- Offer in Compromise: https://www.irs.gov/individuals/offer-in-compromise
For practical how-to guidance on stopping a levy or arranging payments, see our articles:
- How to stop a levy quickly: “If You Get a Notice of Intent to Levy: Immediate Actions” (https://finhelp.io/glossary/if-you-get-a-notice-of-intent-to-levy-immediate-actions/)
- Setting up monthly payments: “Setting Up an IRS Installment Agreement: A Step-by-Step Guide” (https://finhelp.io/glossary/setting-up-an-irs-installment-agreement-a-step-by-step-guide/)
- Alternatives to full payment: “When an Offer in Compromise Could Be the Right Move” (https://finhelp.io/glossary/when-an-offer-in-compromise-could-be-the-right-move/)
Final checklist (what to do now)
- Read the notice and note all dates and amounts.
- Verify authenticity via IRS.gov.
- Gather records (payments, income, expenses).
- Call the IRS or your tax representative—armed with documentation.
- Pursue the fastest appropriate remedy: pay, set up an installment agreement, request CDP, or apply for CNC/OIC.
Professional disclaimer: This article is for educational purposes and does not substitute for personalized tax or legal advice. Consult a licensed tax professional for recommendations tailored to your situation.
If you want, I can help draft a script to call the IRS, list the documents to bring to a tax pro, or point you to the specific IRS form or contact number that applies to your notice.
