Intent to Levy Notice

Types of IRS Collection Notices

The IRS does not seize your wages or bank accounts without warning. Before the IRS can levy your assets, they are required to send you a series of collection notices. Each notice escalates the situation, and each one tells you something important about where you stand and how much time you have to act.

If you have received any of the notices described below, call us immediately at (866) 573-3755. The sooner you take action, the more options you will have available to resolve your tax debt and prevent a levy.

CP504 / LT-11 / LT-16: Notice of Intent to Levy

The CP504 (or its equivalent, the LT-11 or LT-16) is typically the first formal collections notice that taxpayers receive from the IRS. This notice is significant because it tells you that the IRS intends to levy — meaning they plan to seize your state tax refund and, if the debt remains unresolved, they may take further collection action against your wages, bank accounts, and other property.

The CP504 notice will:

• State the amount you owe, including penalties and interest
• Request full payment of the balance due
• Warn you that the IRS may levy your state tax refund
• Inform you that further collection action may follow if you do not respond

The good news about receiving a CP504 is that you still have many options available to you. At this stage, the IRS has not yet taken any enforcement action against your wages, bank accounts, or other property. You can still enter into an installment agreement, submit an Offer in Compromise, request Currently Not Collectible status, or explore other resolution options.

The worst thing you can do at this point is ignore the notice. If you do not respond to the CP504, the IRS will continue to escalate the situation, and your options will become more limited with each step.

Letter 1058 / LT-11: Final Notice of Intent to Levy

If you ignored or did not respond to the CP504, the next notice you will receive is the Letter 1058 (or LT-11 in some cases). This is the Final Notice of Intent to Levy and Notice of Your Right to a Hearing.

This is an extremely serious notice. The word "final" is not an exaggeration. Once you receive this letter, the IRS can begin levying your wages, bank accounts, accounts receivable, Social Security benefits, and other income and assets 30 days after the date of the notice.

When you receive a Letter 1058, you must act immediately. Here is what you need to know:

• You have 30 days from the date of the notice to request a Collection Due Process (CDP) hearing. This is a critical right — requesting a CDP hearing stops the IRS from levying while the hearing is pending.
• If you miss the 30-day deadline, you can still request an equivalent hearing, but the IRS will not be required to stop collection activity while the hearing is pending.
• The IRS can levy your wages, bank accounts, and other assets once the 30-day period expires if you have not responded.

If you have received a Letter 1058, do not wait. Call us at (866) 573-3755 today. We can help you respond properly, request a CDP hearing if appropriate, and negotiate a resolution before the IRS begins seizing your income and assets.

CP90: Intent to Seize Your Assets and Right to a Hearing

The CP90 notice is similar to the Letter 1058, but it specifically warns that the IRS intends to seize your assets. While the 1058 typically addresses wage garnishment and bank levies, the CP90 can apply to a broader range of property, including:

• Vehicles — cars, trucks, motorcycles
• Boats and recreational vehicles
• Rental property and investment real estate
• Retirement accounts — 401(k), IRA, pension
• Your personal residence — in extreme cases, the IRS can seize your home

Like the Letter 1058, the CP90 gives you 30 days to request a Collection Due Process hearing. This hearing is your opportunity to present your case, propose an alternative resolution, and prevent the IRS from seizing your property.

A CP90 notice is one of the most serious collection actions the IRS can take. If you have received this notice, the IRS is telling you that they are prepared to take your physical assets — not just garnish your wages or levy your bank account. You need professional help immediately to protect your property.

668-D: Release of Levy

Not all IRS notices are bad news. The 668-D is a Release of Levy notice, which means the IRS has released a garnishment or bank levy that was previously in place. If you or your representative successfully negotiated the release of a levy, this is the notice confirming it.

However, receiving a 668-D does not mean your tax problem is resolved. A levy release means the immediate seizure has stopped, but you still owe the underlying tax debt. If you do not follow through with a resolution — such as an installment agreement or Offer in Compromise — the IRS can issue a new levy at any time.

If you have received a 668-D, use this as an opportunity to finalize a long-term resolution while the pressure of the levy is temporarily lifted.

What Should You Do?

Regardless of which notice you have received, the most important step is to take action immediately. Every day you wait reduces your options and increases the likelihood of the IRS escalating to enforcement action.

Here is what we recommend:

1. Do not ignore the notice. The IRS will not forget about you, and the situation will only get worse.
2. Do not call the IRS on your own without understanding your rights and options. Anything you say to the IRS can be used against you.
3. Call Colonial Tax Consultants at (866) 573-3755 for a free consultation. We will review your notice, explain exactly what it means, and outline your options for resolving the situation.

We handle wage garnishment releases, bank levy releases, Offers in Compromise, installment agreements, and every other form of IRS resolution. The sooner you call, the more we can do to help.