IRS Notice of Intent to Levy – Urgent Steps to Take
Time Is Running Out—Here’s What to Do
If you’ve received an IRS Notice of Intent to Levy (Letter 1058 or LT11), the IRS is warning you they are about to seize your assets—including wage garnishment by the IRS, seizing funds from your bank account, Social Security, or property.
You typically have 30 days from the date of the notice to act. After that, the IRS can legally begin levies—even if you never spoke to an agent.
In this post, we’ll explain exactly what the notice means, what your options are, and how to stop IRS collections before they start.
What Is an IRS Notice of Intent to Levy?
The IRS sends a Notice of Intent to Levy when you have an unpaid tax balance and they’re preparing to enforce collection. The most common versions include:
- Letter LT11
- Letter 1058 (final notice)
- CP504 (earlier warning)
The IRS is required by law to give you this final written notice at least 30 days before they take enforcement action. That 30-day window is your last chance to respond.
What Happens If You Ignore the Notice?
If you do nothing, the IRS can:
- Begin wage garnishment by the IRS
- Levy your bank account
Related: How to Stop a Bank Levy in California
- File a federal tax lien
- Offset your Social Security or future refunds
Once the levy hits, the IRS doesn’t need court approval—they can seize what you own and notify you afterward.
Step 1: Don’t Panic—But Don’t Delay
You have options, but they require fast action. Your next steps depend on your financial situation and what notices you've received so far.
Step 2: Request a Collection Due Process (CDP) Hearing
If this is your first final notice, you likely qualify to file Form 12153 and request a Collection Due Process hearing. This:
- Stops the levy while your case is reviewed
- Preserves your right to Tax Court appeal
- Gives you a chance to propose alternatives, including settling debt through an Offer in Compromise or setting up an installment agreement
Step 3: Explore Resolution Options to Avoid a Levy
Even if you don’t request a CDP hearing, the IRS may hold off on levies if you:
- Submit an Offer in Compromise
- Set up an Installment Agreement
- Qualify for avoiding levies with Currently Not Collectible status
- Pay the balance in full or in part
Each option has pros and cons. A tax professional can help you choose the best one before the levy hits.
Step 4: If You Already Missed the Deadline
If 30 days have passed:
- You can request an equivalent hearing (but you lose some rights)
- You can negotiate directly with IRS Collections
- You can still stop or reverse levies in some cases—especially for hardship
California taxpayers should also watch for a California Franchise Tax Board levy, which can hit alongside IRS actions.
The sooner you respond, the more leverage you’ll have.
Get Help Stopping the Levy
At Boulanger CPA and Consulting PC, we help taxpayers:
- File emergency CDP requests
- Stop garnishments and levies
- Submit last-minute Offers or Installment Agreements
- Challenge the IRS’s collection actions if invalid
If you’re searching for Orange County tax relief options near you, our team is ready to act quickly. For further strategies and insights, you can also learn more in our Defend What’s Yours book.
Call (657) 218-5700 or schedule at www.orangecounty.cpa
We move fast to protect your income, assets, and rights.
Frequently Asked Questions
What is an IRS Notice of Intent to Levy?
This notice warns that the IRS plans to seize your wages, bank accounts, or property to collect unpaid taxes. It is often issued after multiple attempts to collect have failed.
How much time do I have to respond?
You generally have 30 days from the date of the notice to request a hearing or work out a resolution with the IRS before levy action begins.
Can a levy be stopped once it starts?
Yes. Depending on your situation, levies can be lifted by arranging an installment agreement, proving financial hardship, or submitting an Offer in Compromise. Quick action is critical.
What property can the IRS levy?
The IRS can levy wages, bank accounts, retirement accounts, Social Security benefits, and in rare cases, physical assets. Certain income sources are exempt by law.
Will the IRS always levy if I receive this notice?
Not necessarily. If you respond within the deadline and request a hearing, negotiate a payment plan, or provide financial documentation, you can often avoid enforcement.
What’s the difference between a lien and a levy?
A lien is a legal claim against your property, while a levy is the actual seizure of funds or assets. Receiving a Notice of Intent to Levy means the IRS is moving from lien to collection action.
Can California state agencies issue levy notices too?
Yes. The California Franchise Tax Board (FTB) and Employment Development Department (EDD) can issue their own levy notices. These agencies may act independently from the IRS.
Should I handle this on my own?
Because levies can cause immediate financial harm, it’s best to get professional help to negotiate release or prevent enforcement before your deadline expires.
📣 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.
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.
Marc The CPA's Tax Blog
