Notice of Intent to Seize Levy Your Property: Complete Guide

Every year, the IRS sends millions of notices to taxpayers with one critical message: notice of intent to seize levy your property. If you’ve received one, you’re not alone. Getting a notice of intent to seize property is serious. It means the IRS plans to collect through wage garnishment, bank levies, or asset seizures. You have at least 30 days to act, so don’t wait. Professional help boosts your chances of stopping or delaying a levy by 70%.
Learn your rights and how Halls IRS can protect your assets.

What Is a Notice of Intent to Seize Levy Your Property?

A notice of intent to seize levy your property is a formal legal statement sent by the IRS. Legally required under IRC Section 6331(d), the notice warns you that the IRS is about to seize one or more of your assets, such as wages, bank funds, or property, to pay an overdue federal tax bill. If you have ignored earlier bills and reminders, this is the IRS’s way of saying, “Act now or we’ll take what you owe.” Here’s why this notice is important:

• It’s not the first, but often the last warning. You’ll get several notices and bills about your unpaid taxes before the IRS ramps up pressure. This is the moment to take action before property loss.
• It’s required by law. The IRS cannot take your property without first giving you written notice and waiting at least 30 days (except in rare emergencies).
• It contains your rights. Every notice of intent to seize or levy your property details your right to appeal, resolve, or dispute the debt.
• It will name the specific taxes, years, and total liability at risk.
• It sets a deadline. Once you receive the notice, you typically have 30 days to stop the levy, either by paying, negotiating, or requesting a hearing.

Key point: The IRS is not seizing your property the day this arrives. You can still act, but delaying will put your assets at imminent risk.

Types of IRS Notices: CP504 Notice of Intent to Levy and More

There are several possible notices you might receive. The most common is the CP504 notice of intent to levy. Others include official letters escalating the matter if you do not respond. Here’s how they work and what each means:

Notice	Audience	Triggers & What They Mean	What IRS Can Do
CP504	Individuals	Unpaid taxes remain. IRS plans to levy the state tax refund if not paid.	Seize state tax refund.
CP504B	Businesses	Unpaid payroll/business taxes. Similar to CP504 but for business assets.	Take state-level refunds.
LT11/Letter 1058	Individuals/Businesses	Final Notice (sent by certified mail): IRS will seize wages, bank accounts, or property unless you act.	30-day right to hearing; then all assets available for levy.
CP90/CP297	Individuals/Businesses	Last notices for Social Security/federal payments. Final warning for federal payment sources.	IRS seizes these payments.

The progression:

1. IRS first sends reminder notices (CP14, CP501, CP503).
2. CP504 notice of intent to levy arrives as a strong warning of a pending state refund seizure.
3. If you still don’t respond, you’ll get an LT11 or Letter 1058, which starts the 30-day countdown to wage, bank, or property levies with clear appeal rights.

For more details on all IRS notices, see the IRS official page.

How the IRS Levy Process Works?

The IRS does not seize property immediately after you miss a tax payment. There are multiple steps, providing opportunities for you to respond and resolve your account. Here’s how the levy assets process unfolds:

1. Tax bill sent (CP14).

• IRS assesses the unpaid tax and sends an initial bill by mail.

2. Reminder notices (CP501, CP503).

• Additional mailings warn you that you are entering IRS collections if you don’t pay.

3. Strong warning—CP504 notice.

• The IRS plans to levy your state tax refund if you don’t pay. It is a serious escalation; other assets can be levied after one more notice.

4. Final Notice of Intent to Levy—LT11 or Letter 1058.

• Sent via certified mail, this official notice of intent to levy assets details your right to a Collection Due Process (CDP) hearing. It triggers a 30-day countdown before the IRS can seize bank funds, garnish wages, or take other property.

5. 30-day response period.

• During this window, you can pay, resolve, negotiate, or appeal.

6. IRS levy begins.

• If the 30 days pass with no action (and all notices were properly delivered), the IRS contacts your bank, employer, or other third parties to take funds or property until the debt is paid or arrangements are made.

Timeline overview:

• 0–45 days: Initial bill and reminders (CP14, CP501, CP503).
• 45–75 days: CP504 notice of intent to levy (state refunds at risk).
• 75–120 days: LT11/Letter 1058 sent (all assets at risk after 30 days).

Throughout the process, you have the right to set up a payment plan, dispute the amount, or seek relief, but acting before the levy begins keeps you in control.

Assets the IRS Can Levy

A notice of intent to levy assets means the IRS can move to take numerous types of property if you do not resolve the situation. Here’s what you need to know:

Commonly levied assets:

• Wages and salaries: Garnished directly from your employer; ongoing until your debt is repaid.
• Bank accounts: Funds are frozen for 21 days (giving you time to challenge), after which the bank must release owed funds to the IRS.
• State tax refunds: These are often the first assets seized after a CP504 notice of intent to levy.
• Vehicles: Cars, boats, and RVs can be repossessed and sold.
• Real estate: Even your home (primary residence) is at risk, but seizure is rare and requires a court order for amounts under $5,000.
• Business assets: Inventory, receivables, and equipment owned by your business.
• Retirement accounts: IRAs and 401(k)s can be tapped, although the IRS weighs equity and hardship.
• Social Security: Up to 15% of benefit payments can be levied via the Federal Payment Levy Program.

Some assets are exempt:

• Unemployment benefits
• Workers’ compensation
• Certain public assistance payments
• A modest amount of personal effects and tools necessary for work

Learn more about asset exemptions in IRS Publication 1494.

Also Read : Explore how Halls IRS can help with stopping wage garnishment and levy releases.

The 30-Day Rule and Your Rights

A critical protection is the 30-day rule. After the IRS sends you a Final Notice (LT11/Letter 1058), you have at least 30 days before they can seize property (except state refunds, which may be taken after the CP504).
This is your chance to stop a levy and exercise these rights:

• Right to a Collection Due Process (CDP) hearing:
  File IRS Form 12153 within 30 days to pause collections and appeal before an independent Appeals Officer.
• Right to challenge the levy or tax debt:
  At your hearing, dispute the amount or the reason for the levy, propose payment plans, or request innocent spouse relief.
• Right to pay, negotiate, or settle:
  You can avoid levy by paying or settling with the IRS directly in the 30-day window.

Helpful Resources:

• Collection Due Process Hearing Information (IRS)
• IRS Appeals Forms

Responding to a CP504 Notice of Intent to Levy

A CP504 notice of intent to levy is not the final levy action, but it’s your last warning before the IRS escalates to full asset seizures. Here’s the right way to respond:

Step-by-step checklist:

1. Read the notice carefully:
   Confirm tax year, debt amount, and correct taxpayer info.
2. Confirm if the debt is valid:
   Compare against your records; sometimes IRS records are out of date or inaccurate. If you need help, contact a tax professional.
3. Contact the IRS (or your tax expert):
   The notice lists a number to call. If this feels intimidating, Halls IRS can talk to the IRS on your behalf.
4. Consider payment and resolution options:
   Can you afford full payment? If not, what plan works best (instalments, settlement, hardship pause)?
5. Document your contact and actions:
   Keep notes of all IRS interactions.
6. Stay on deadline:
   Don’t let the 30-day clock expire on any IRS final notice you receive after a CP504.

Need expert help fast?

Contact Tina Hall, Founder at Halls IRS, for a free initial consultation at (478) 455–4615, 314 Old Nunez Rd, Swainsboro, GA 30401.

Payment Options and Alternatives

If you can’t pay the full amount owed, the IRS offers several ways to resolve your debt and avoid a full levy. Here are your options:

• Full payment: Paying the balance owed immediately stops all collections.
• Instalment Agreement: Pay in monthly instalments for up to 72 months. As long as you pay on time, the IRS stops collection action.
  To apply: set one up online with the IRS or call for custom options.
• Offer in Compromise (OIC): Settle your bill for less than you owe if you can’t afford the full tax, penalties, and interest.
  The IRS accepts OICs if you show that payment would cause severe hardship, or you don’t have assets or income to cover the full tax.
• Currently Not Collectable (CNC): If you truly cannot pay anything, request CNC status. The IRS puts your account on hold, pausing all levy actions.
• Innocent Spouse Relief: If a spouse or ex-spouse’s mistakes caused the debt, you may qualify for relief.

Choosing the best solution:

A qualified tax professional can advise which option fits your situation and help negotiate with the IRS.

How to Request a Collection Due Process (CDP) Hearing?

If you get a Final Notice like LT11, Letter 1058, CP90, or CP297, asking for a CDP (Collection Due Process)hearing is very important. It protects your rights and can delay the IRS from taking your property.. Here’s how:

1. Complete IRS Form 12153:
   Fill out the IRS Form. Provide your correct contact information and tax account details.
2. Clearly state your reasons:
   Request a payment plan, dispute the debt, or make another proposal with an appropriate reason.
3. Mail it before the 30-day deadline:
   Use certified mail for proof.
4. Prepare for your hearing:
   You (and/or your representative) will speak with an IRS Appeals Officer, often by phone.
5. Get a written decision:
   If you disagree, you can appeal to the U.S. Tax Court.

Filing this form pauses IRS activity while your case is reviewed. Missing the deadline means collections can go forward while your appeal is processed.

Resource: IRS CDP Hearing Guide

Consequences of Ignoring a Notice of Intent to Levy Assets

Ignoring a notice of intent to levy assets invites severe and immediate consequences. Here’s what you’re risking:

• Asset seizure of bank accounts or wages: After deadlines pass, the IRS contacts your bank or employer to collect.
• Wage garnishment: Paycheck deductions occur until the full debt is paid.
• Property sales: Vehicles, real estate, or business assets can be seized and auctioned.
• Tax liens: IRS may file a public claim against everything you own, damaging your credit and making it harder to sell or borrow.
• Credit score harm: While the notice itself won’t appear on credit reports, liens and unresolved federal debt will.
• Increased penalties and interest: Debts compound monthly.
• Continuous collection: IRS efforts will continue until your debt is resolved or you run out of options.

Preventing and Releasing an IRS Levy

To stop or release an IRS levy, act quickly by paying your tax debt, setting up a payment plan, or proving financial hardship. These steps can prevent the IRS from taking your wages, bank money, or property.

Preventing an IRS levy:

Here’s how you can prevent an IRS Levy

• Respond to every IRS notice quickly; address tax debts as soon as possible.
• Pay in full or enter a payment plan before deadlines expire.
• File all your required tax returns; the IRS won’t negotiate with non-filers.
• File an appeal or CDP hearing request on time.

How to release a levy:

• Prove hardship: If a levy keeps you from paying for basic needs, the IRS may release it.
• Set up an Instalment Agreement or Offer in Compromise: The IRS usually removes a levy if you’re working toward resolution.
• Pay the debt in full or meet other IRS requirements: Immediate release follows.
• Request Innocent Spouse Relief: If approved, liability and the levy may shift solely to a spouse or ex-spouse.
• Contact a tax expert: Negotiating a release is much easier with a professional on your side, especially if time is short.

Also Read : Halls IRS Levy Release Services

When to Seek Professional Help

While it’s possible to call the IRS yourself, many taxpayers find the process confusing, frustrating, or overwhelming. Here’s when to bring in a professional:

• The IRS is threatening wage garnishment, asset seizure, or property auction.
• You owe multiple years of taxes.
• You disagree with the tax amount or believe there’s a mistake.
• Your financial situation is complicated (business owner, multiple income sources, etc.).
• The IRS has rejected your payment plan request or settlement offer.
• You’re facing immediate hardship or risk of losing your home.

Benefits of professional help:

• A specialist like Tina Hall can handle all IRS communication, ensuring nothing gets missed.
• Professionals know the ins and outs of complicated IRS procedures, maximising your options and minimising your stress.

Get started:

Call (478) 455–4615 or visit us at 314 Old Nunez Rd, Swainsboro, GA 30401. You’ll get personal, local help from a national IRS resolution expert.

Conclusion: Protecting Your Property from IRS Seizure

When you receive a notice of intent to seize levy your property, the clock is ticking. The IRS has launched serious action, but you still have powerful rights and helpful options. Take the notice seriously; review the details, consult your records, and contact reliable help if you have any uncertainty.

If you’ve received a notice of intent to levy, don’t wait until it’s too late.
Contact Halls IRS and speak with Tina Hall today at (478) 455–4615.
Our team is here to protect your property, guide you through your IRS challenges, and help you take back control of your finances.

Frequently Asked Questions

Q1.How long after a CP504 notice can the IRS levy my assets?

• Ans. The tax refund can be levied at once by the IRS following the CP504 notice of intent to levy. In other assets, a final notice (e.g., LT11, Letter 1058) must be sent by them, and 30 days allowed to pass before taking bank funds, wages or property.

Q2.Could the IRS attach my house because I did not pay my taxes?

• Ans. Yes, but it is the last resort. IRS has to obtain court authorization to take over a primary residence, and in most cases, only after the exhaustion of all other collection efforts.

Q3. What can I do in the event I do not agree with the amount on the notice?

• Ans. If you disagree with the amount in the notice, you can easily demand a Collection Due Process Hearing within a 30-day timeframe. You can fill out the Form 12153 to start your appeal.

Q4. Could there be an impact of a notice of intent to levy on my credit score?

• Ans. No, any notice of intent to levy does not reflect on your credit report. This can, however, have adverse effects on your credit and borrowing power in case the IRS imposes a tax lien.

Q5.Shall I be able to bargain with the IRS, having given notice of intent to levy?

• Ans. Absolutely! You have various options available for bargaining or negotiation. You may arrange payment tables, make an Offer in Compromise, or ask to hold a hearing to question the levy and seek other options.