Opening a letter from the IRS labeled “Notice of Intent to Levy” is enough to make anyone’s heart skip a beat. Wage garnishments, bank levies, and asset seizures immediately come to mind.
But here’s the critical truth most taxpayers don’t realize:
A Notice of Intent to Levy is not a seizure; it’s a countdown.
And if you act quickly, you can often stop IRS collections before they start.
What Is a Notice of Intent to Levy?
A Notice of Intent to Levy (often issued as Letter 1058 or LT11) is the IRS’s formal warning that it intends to seize your property to satisfy unpaid tax debt.
Under federal law, the IRS generally cannot levy your assets until it:
- Assesses the tax
- Sends a Notice and Demand for Payment
- Issues a Final Notice of Intent to Levy
- Provides you with the right to a hearing
This requirement is codified in:
Internal Revenue Code § 6330 — Notice and Opportunity for Hearing Before Levy
This notice triggers one of the most powerful taxpayer protections available.
The 30-Day “Panic Button”: Your Collection Due Process Rights
Once the Notice of Intent to Levy is issued, you have 30 days from the notice date to request a Collection Due Process (CDP) Hearing.
You do this by filing:
IRS Form 12153 — Request for a Collection Due Process or Equivalent Hearing
If filed timely, the law requires the IRS to:
✔️ Suspend most collection actions
✔️ Halt bank levies
✔️ Stop wage garnishments
✔️ Pause asset seizures
while your case is reviewed by the IRS Independent Office of Appeals.
Authority:
IRC § 6330(e)(1) — Suspension of collections during CDP hearing.
What Assets Can the IRS Levy?
If no action is taken, the IRS can levy:
- Bank accounts
- Wages and commissions
- Social Security benefits (up to 15%)
- Rental income
- Accounts receivable
- Business assets
- Vehicles and real estate (with court approval)
Authority:
- IRC § 6331 — Levy and Distraint
What if I can’t afford to pay the IRS?
You may qualify for:
- Installment Agreement
- Offer in Compromise
- Currently Not Collectible status
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