How to Avoid IRS Levies in the First Place – Proactive Strategies That Work

Don't Wait for the IRS to Strike—Here’s How to Stay Ahead

An IRS levy is one of the most aggressive collection tools the government can use. It allows the IRS to legally seize your wages, freeze your bank accounts, and even take business assets.

But what most taxpayers don’t realize is that levies don’t come out of nowhere. There’s a trail of notices, missed deadlines, and warning signs that happen first—and if you act in time, you can stop it all before the damage is done.

This blog outlines proactive strategies to avoid IRS levies altogether and keep your income and property protected.

What Is an IRS Levy?

An IRS levy is a legal seizure of your property or money to satisfy a tax debt. It can take many forms:

• Wage garnishment
• Bank account levies
• Accounts receivable seizures (for businesses)
• Real estate seizures (in rare cases)

It’s different from a lien. A lien is a claim. A levy is actual enforcement.

Related: IRS Levy vs IRS Lien – What’s the Difference?

How Do IRS Levies Start?

Here’s the typical progression:

1. IRS assesses a balance
2. You receive a series of notices (CP14, CP501, CP503)
3. The IRS sends a Final Notice of Intent to Levy (Letter 1058 or LT11)
4. If no action is taken within 30 days, enforcement begins

Related: IRS Notice of Intent to Levy – Urgent Steps to Take

Proactive Strategy #1: Stay in Compliance—Even If You Can’t Pay

File all required tax returns on time, even if you can’t pay in full. Why?

• It prevents additional failure-to-file penalties
• It shows good faith to the IRS
• It keeps you eligible for resolution programs

If you’re behind, start with: Facing Back Taxes? Here’s How Orange County Residents Can Get Relief

Proactive Strategy #2: Respond to IRS Notices Quickly

Do not ignore letters from the IRS. Early notices (like CP14 or CP501) are warnings—not enforcement. Responding early gives you options like:

• Short-term holds
• Payment plan setup
• Reasonable cause relief
• CDP hearing requests

Proactive Strategy #3: Set Up an Installment Agreement

Entering into an Installment Agreement before levy action is key.

• The IRS typically suspends collection while a payment plan is pending
• Once approved, enforcement stops unless you default

Bonus: If you use direct debit and owe under $25K, you may qualify for lien withdrawal too.

Proactive Strategy #4: Submit an Offer in Compromise or CNC Request

If you can’t afford to pay your full balance, consider:

• Offer in Compromise – Settle for less based on ability to pay
• Currently Not Collectible – Pause enforcement due to hardship

The IRS cannot levy while an OIC or CNC request is under review.

Proactive Strategy #5: Request a CDP Hearing Before the 30-Day Deadline

If you’ve received Letter 1058 or LT11, you can file Form 12153 – Request for a Collection Due Process (CDP) Hearing within 30 days.

Doing so will:

• Pause levy action
• Allow for appeal and negotiation
• Preserve your rights to Tax Court

Related: IRS Collection Appeals Program (CAP) vs CDP Hearings – What’s the Difference?

We Help Orange County Taxpayers Avoid IRS Levies Before They Start

At Boulanger CPA and Consulting PC, we:

• Monitor IRS transcripts for levy risk
• Respond to levy notices immediately
• File appeals and requests for hold
• Negotiate affordable resolutions

Call (657) 218-5700 or book a proactive consultation at www.orangecounty.cpa

FAQ: Avoiding IRS Levies

Q: Will the IRS warn me before they levy?
A: Yes. They are legally required to send a Final Notice of Intent to Levy before taking action.

Q: Can I stop a levy if I set up a payment plan?
A: Yes—if done before enforcement starts or during the review period.

Q: What if I already missed the 30-day window?
A: You may still request an equivalent hearing or file for hardship status to pause collections.

Q: Can the IRS levy my wages without taking me to court?
A: Yes. The IRS does not need court approval to levy assets or garnish wages.

📣 About the Author

Marc Boulanger, CPA is the founder of Boulanger CPA and Consulting PC, a boutique tax resolution firm based in Orange County, California and trusted by high-income individuals and business owners across Southern California.

He is the author of Defend What’s Yours: A California Taxpayer’s Guide to Beating the IRS and FTB at Their Own Game, available now on Amazon. The book offers a step-by-step plan for resolving IRS and FTB tax debt without losing your business, your home, or your peace of mind.

With over a decade of experience resolving high-stakes IRS and State tax matters, Marc brings strategic insight to complex cases involving wage garnishments, bank levies, unfiled returns, and six-figure tax debts. He is known for helping clients reduce or eliminate tax liabilities through expertly negotiated settlements and compliance plans.

Marc is a Certified Public Accountant licensed in California and Oklahoma and holds the designation of Certified Tax Representation Consultant. He is a member of the American Society of Tax Problem Solvers (ASTPS) — the national organization founded by the educators and practitioners who have trained thousands of CPAs, EAs, and tax attorneys in IRS representation strategy.

Every case is handled with discretion, proven methodology, and direct CPA-led representation — not call center scripts.

📍 Learn more at www.orangecounty.cpa or call (657) 218-5700.

Order the book on Amazon: Defend What’s Yours