Receiving an IRS notice of intent to levy means the government may be preparing to take money or property to collect unpaid taxes. The notice may identify itself as CP504, LT11, or Letter 1058, depending on where you are in the collection process.
These notices should not be ignored. Some provide a limited period to request an appeal before the IRS levies wages, bank accounts, or other assets. Review the notice immediately, confirm the deadline, and determine which response is appropriate for your situation.
For a broader overview of levy prevention and release options, read our complete guide to stopping an IRS levy or wage garnishment.
What an IRS Notice of Intent to Levy Means
An IRS notice of intent to levy warns that the agency may seize property or rights to property if an unpaid tax balance is not resolved.
Depending on the circumstances, a levy may allow the IRS to:
- Take money from a bank account
- Garnish wages
- Apply a state tax refund to the balance
- Take certain federal payments
- Seize and sell vehicles or other property
However, not every notice provides the same rights or deadline. The first step is to identify whether you received CP504, LT11, Letter 1058, or another collection notice.
Is CP504 a Final Notice Before Levy?
CP504 is a serious collection notice stating that the IRS intends to levy because an unpaid balance remains.
The notice is commonly sent after earlier balance-due notices have not resolved the debt. It may warn that the IRS can take a state tax refund and begin searching for other assets subject to collection.
Although CP504 is often described as a final reminder, it is not always the same as the formal Collection Due Process notice that provides the right to request a hearing before the IRS levies other property.
After CP504, the IRS may send LT11, Letter 1058, CP90, or another notice explaining the right to a Collection Due Process hearing. Do not wait for another letter before responding to CP504. Resolving the account at this stage may help prevent further collection action.
LT11 and Letter 1058: The 30-Day Deadline
LT11 and Letter 1058 are generally titled Final Notice of Intent to Levy and Notice of Your Right to a Hearing.
These notices explain that the IRS intends to seize property or rights to property and that you may request a Collection Due Process hearing. The request generally must be submitted within 30 days.
Check the exact deadline printed on your notice. Missing it may limit your appeal rights and allow the IRS to proceed with collection.
A timely hearing request is generally submitted using Form 12153, Request for a Collection Due Process or Equivalent Hearing. The completed request should be sent to the address shown on the notice.
What to Do After Receiving a Notice of Intent to Levy
Take the following steps as soon as possible.
1. Confirm That the Notice Is Genuine
Check that the notice contains:
- Your correct name and address
- The relevant tax periods
- The amount the IRS says you owe
- An official notice or letter number
- Instructions for contacting the IRS
- A response or appeal deadline
If anything appears incorrect, contact the IRS using a verified telephone number rather than relying on unexpected calls, emails, or text messages.
2. Review the Tax Balance
Compare the notice with your tax returns, payment records, previous IRS letters, and account transcripts.
Determine whether:
- The tax belongs to you
- All payments were properly credited
- The IRS used the correct tax returns
- The balance includes penalties or interest
- A previous payment arrangement remains active
If you disagree with the balance, gather documents that support your position before contacting the IRS.
3. Record the Response Deadline
Do not assume that contacting the IRS informally extends an appeal deadline. Record the date shown on the notice and keep proof of anything submitted.
If you received LT11 or Letter 1058 and want a Collection Due Process hearing, make sure the request is filed within the period stated in the notice.
4. Choose an Appropriate Resolution
The right response depends on whether you agree with the debt and what you can afford to pay.
Pay the Tax Balance
Paying the balance in full is the most direct way to prevent the proposed levy. Confirm the total payoff amount because penalties and interest may continue to accrue.
If full payment is not possible, paying part of the balance may reduce the debt, but a partial payment alone may not stop collection. You will generally need an approved arrangement for the remaining amount.
Request an Installment Agreement
An installment agreement allows eligible taxpayers to pay their tax debt over time.
The monthly payment should be realistic because missing payments or failing to meet future tax obligations may cause the agreement to default. The IRS may require financial information depending on the amount owed and the proposed terms.
Learn more about using an IRS installment agreement to address unpaid taxes.
Consider an Offer in Compromise
An offer in compromise may allow a qualifying taxpayer to resolve tax debt for less than the full balance. Approval is based on factors such as income, expenses, assets, and ability to pay.
Not everyone qualifies, and submitting an offer does not guarantee acceptance. The taxpayer must also satisfy the applicable filing and payment requirements.
Read more about whether an offer in compromise may provide a suitable tax-debt resolution.
Explain Financial Hardship
If paying the IRS would prevent you from meeting basic and reasonable living expenses, you may be able to request a temporary collection delay or currently not collectible status.
The IRS will usually require financial information, including evidence of income, household expenses, assets, bank balances, and necessary medical or transportation costs.
Hardship status does not eliminate the debt. Penalties and interest may continue, and the IRS may review your finances later.
Request a Collection Due Process Hearing
If you received LT11, Letter 1058, or another notice providing Collection Due Process rights, you may request a hearing with the IRS Independent Office of Appeals.
Depending on the circumstances, issues raised during the hearing may include:
- Whether the IRS followed proper collection procedures
- Whether the tax has already been paid
- Whether the proposed levy creates hardship
- Whether an installment agreement is appropriate
- Whether an offer in compromise should be considered
- Whether another collection alternative is available
- Whether you had a prior opportunity to dispute the tax liability
A timely hearing request generally prevents the IRS from proceeding with the proposed levy for the covered tax periods while the hearing is pending, subject to limited exceptions.
What Happens If You Ignore the Notice?
Ignoring the notice may allow the IRS to move forward with collection after the applicable waiting period and appeal rights have passed.
The IRS may levy wages, freeze funds in a bank account, take certain payments, or pursue other property. A federal tax lien may also be filed to protect the government’s interest in your assets.
The exact timing depends on the notice, your account, and whether additional procedural steps are required. Our guide on how long it may take before the IRS issues a levy explains the general timeline.
In some situations, taxpayers are surprised by a levy because notices were sent to an old address or were overlooked. Learn more about whether the IRS can levy an account without notice.
How a Tax Professional Can Help
A tax attorney or other authorized tax professional can review the notice, identify the deadline, and communicate with the IRS on your behalf.
Professional assistance may include:
- Confirming the tax balance and periods involved
- Reviewing whether the IRS followed proper procedures
- Preparing a Collection Due Process hearing request
- Protecting available appeal rights
- Negotiating an installment agreement
- Evaluating an offer in compromise
- Preparing financial hardship documentation
- Developing a longer-term tax-resolution strategy
Getting advice early may provide more options than waiting until wages or bank funds have already been levied.
Frequently Asked Questions
What is an IRS notice of intent to levy?
It is a warning that the IRS may seize money or property to collect unpaid taxes. The specific rights and deadlines depend on the type of notice received.
Is CP504 the final notice before levy?
CP504 is a serious notice of intent to levy and should be addressed immediately. However, it is not always the formal Collection Due Process notice required before the IRS levies certain other property.
How long do I have to respond to LT11 or Letter 1058?
You generally have 30 days to request a Collection Due Process hearing. Follow the exact deadline and instructions printed on the notice.
Can I stop a levy after receiving the notice?
Potentially. Paying the balance, arranging an installment agreement, qualifying for an offer in compromise, proving hardship, correcting an error, or requesting a timely appeal may prevent the proposed levy.
What if I disagree with the amount on the notice?
Contact the IRS and provide supporting records. If the notice offers appeal rights, submit the appropriate request before the deadline.
What happens if I miss the 30-day appeal deadline?
You may still be able to request an equivalent hearing within the applicable period, but it does not provide all the protections available through a timely Collection Due Process hearing.
Take the First Step Toward Tax Resolution
Tax problems can become more difficult when left unresolved, but you do not have to navigate the IRS alone. Tax Attorneys of America helps individuals and businesses understand collection notices, evaluate potential relief options, and pursue an appropriate path toward resolving tax debt. Contact Tax Attorneys of America today to request a free, confidential case evaluation and learn which options may apply to your situation.
This article provides general information and does not constitute legal or tax advice. Every situation is different. Speak with a qualified professional about your specific circumstances.
This article is general information, not legal or tax advice. Every situation is different — talk to a licensed professional about your specific circumstances.