Final Notice of Intent to Levy

This notice informs the taxpayer that the IRS intends to levy earnings or assets and gives the taxpayer 30 days to respond/pay off debt before the IRS engages in any enforced levy action.  Depending on your situation, you may have viable options such as setting up a payment plan (commonly called an installment agreement), submitting an Offer in Compromise (settling your tax debt for less), or requesting to be classified as Currently Not Collectible.   You can also request a 30 day hold on your account to set this up, however, if you do not respond by the levy period, it is very difficult to have the levy released without requesting one of the above options.

If you do not respond to this letter after 30 days, the IRS may place a levy on your earnings (they may send a letter to your employer to garnish your paycheck), they may seize any funds in your bank accounts, and may foreclose on any property you have.  Therefore, it is very important that you respond to this letter.  The IRS realizes that not everyone can pay the full tax deficiency and therefore is willing to make a reasonable arrangement with the taxpayer. 

If the levy has already occurred, you can release the levy, however, you will need to get back into compliance.  For example, if you are an individual taxpayer, you will have to complete either Form 433-A or 433-F, which is used to determine the monthly amount you can pay to the IRS taking into account allowable monthly expenses.  If you are truly living paycheck to paycheck, the IRS will classify you as currently not collectible and will not demand payment from you.  If you believe you may be a good candidate for an offer in compromise, then you can submit an offer based on Form 433-A to the IRS and see if it is accepted.