This blog post is adapted from a transcript of our new podcast, Tax Relief Academy. You can listen to the podcast episode here:
Notice of Intent to levy is a notice from the IRS that is the last of usually five notices for individuals or four notices for business gives.
It gives a taxpayer one last chance to try to set up with the IRS before the IRS will levy; like, it says it's an intent to levy levy can be the wage garnishments it can be a notice to your bank to levy whatever money you have in your account.
It can be if you're in business, it could be a notice to somebody that owes you money, that and they'll intercept that, that revenue to you.
So It typically you want to respond within 30 days, because after 30 days notice most will say this, after 30 days, they can go ahead and and let be your, you know, garnish your wages or your bank account.
And if you contact them within that 30 day period, they will normally give you a little bit of time to back up a proposal or you can go ahead and just file a request for a due process or equivalent hearing.
Now, if you, if you do file that that request for an equivalent or for a due process or equivalent hearing, another word is appeal it, it stops the collections by law, but it also stops the 10 year collection period.
It freezes that if you get denied and the appeal you can appeal it to Tax Court. First, you appeal Within the IRS system itself and then eventually the Tax Court, if you file after 30 days you have up to a year for an equivalent hearing.
Legally as it does not stop collection by the IRS, but they normally do as a matter of practice. But the good news is it doesn't stop the 10 year clock from running.
Incidentally, it's not a direct answer to the question, what what this notices, but the IRS only has 10 years to collect.
And if they don't collect within that time period, which can be extended for various reasons, but if they don't collect, the debt goes away. It is essentially forgiven.
Marco Antonio “Tony” Ramos, founding partner of The Law Office of Tony Ramos, P.C., is licensed by the Texas Supreme Court to practice law. He is a native Texan, born in Laredo, Texas, and has been practicing law since 1976. Attorney Ramos is a man who highly values virtue, integrity, and justice and strives to provide a higher standard of legal care to all of our clients.