How Final is the IRS Final Notice of Intent to Levy?
Jim Payne, CPA • March 6, 2025
How Final is the IRS Final Notice of Intent to Levy?
If you’ve received an IRS Final Notice of Intent to Levy (Letter 1058 or LT11), you might be wondering just how "final" it actually is. The short answer? It’s pretty serious, but you still have options—if you act fast.
Let’s break it down.
What Is the Final Notice of Intent to Levy?
This letter means the IRS is getting ready to seize your assets—that could be your bank account, wages, Social Security benefits, and even your retirement accounts (yes, including your IRA!).
It’s not just a warning; it’s the last official step before they start taking action.
But here’s the key: You have 30 days to respond before they can actually move forward with the levy. That means you still have time to stop it—but you can’t just ignore it and hope it goes away.
What Are Your Options?
If you act within the 30-day window, you can:
- Request a Collection Due Process (CDP) hearing – This is your right to dispute the levy, propose an alternative, or challenge the tax liability itself (if you haven’t done so before). The IRS will put the levy on hold while they review your case.
- Set up a payment plan – If you can’t pay in full but want to work something out, an Installment Agreement can stop the levy process.
- Submit an Offer in Compromise (OIC) – If you qualify, you might be able to settle your tax debt for less than what you owe.
- Request Currently Not Collectible (CNC) status – If you’re struggling financially, proving hardship to the IRS can temporarily halt collections.
- Pay the tax debt – If you can afford it, paying off the debt (or at least making a good-faith payment) can make the levy go away.
What Happens If You Ignore It?
If you don’t take action within 30 days, the IRS can and will start levying your assets. That means they can:
- Empty your bank account
- Garnish your wages
- Take your Social Security payments
- Seize other assets (in rare cases, even property)
And once the levy is in place, it’s much harder to undo.
The Bottom Line
The Final Notice of Intent to Levy is final in the sense that it’s your last warning before the IRS starts taking your money. But you still have options—if you act quickly. If you get this letter, don’t panic, but don’t ignore it either. Reach out to the IRS or a tax professional and take action before the 30-day deadline passes.
Services for Real Estate Pros with Backoffice Squared March 11, 2025 07:30 AM No one wants to deal with an IRS audit, but here’s the good news: the chances of facing one are shrinking. Traditional IRS audits will become rarer due to recent layoffs and a shift toward automation. And with the right strategy, you can make tax season even easier for yourself. Why Field and Office Audits Are Disappearing In February 2025, the IRS laid off about 6,700 employees , including many revenue agents responsible for auditing high-income taxpayers and businesses. With fewer auditors, the IRS doesn’t have the resources to conduct as many in-person audits. Field audits (where an IRS agent visits your home or business) will happen far less often. Office audits (where you go to an IRS office to clear up tax issues) will also decline. So, unless you have a seriously complicated tax situation, the odds of sitting across from an IRS agent are lower than they’ve been in years. The Shift to Mail Audits & Automated Enforcement Instead of in-person audits, the IRS will focus on correspondence audits —tax checks done through mail or electronic communication. These usually target: Mismatched income reports (W-2s or 1099s that don’t match your return). Missing tax forms. Unusual deductions or credits. While these audits are less stressful, they can still be a hassle if you don’t respond quickly. With fewer audit people available, resolving issues could take longer. A Smart Strategy: Filing an Extension & Checking Transcripts One of the main reasons taxpayers get audited is mismatched income reporting —when what you report doesn’t match what the IRS has on file. The best way to avoid this? Wait until your IRS Wage and Income Transcript is available before filing. Here’s why it works: The IRS releases these transcripts in May or June , showing all W-2s, 1099s, and other reported income. By filing an extension until October , you can check your transcript before submitting your return. This ensures everything matches, reducing the risk of an audit or correction notice. Filing an extension doesn’t increase your audit risk, giving you extra time to ensure accuracy. Remember: if you owe taxes, you must pay by the April deadline to avoid penalties. What This Means for You With fewer IRS agents, in-person audits are less likely, but automated enforcement is still in play. To stay out of trouble: File an extension and check your Wage and Income Transcript before submitting. Keep records of deductions and credits in case of a mail audit. Respond to IRS letters quickly if you get one—ignoring them won’t make them go away. Final Thoughts The IRS will be changing its audit strategies. By filing smart —waiting for your income transcripts and ensuring everything matches—you can reduce your audit risk and avoid unnecessary headaches. A little patience and accuracy can save you big down the road.
Tax season can be stressful, and nothing makes it worse than getting a Form 1099-K that’s incorrect. Whether the amount reported is too high, too low, or just completely wrong, it’s important to address the issue quickly to avoid headaches with the IRS. Here’s what you need to know if you receive a bad 1099-K.
Here’s one of my predictions for the next few years—thanks to recent IRS layoffs and ongoing staffing shortages, more Offers in Compromise (OICs) are going to slip through the cracks. And when that happens, some taxpayers might see their tax debt automatically settled without the IRS ever reviewing their case. Sound too good to be true? It’s not. There’s a little-known rule that works in your favor:
Owe the IRS more than you can afford? An Offer in Compromise (OIC) might let you settle for less than the full amount . Sounds great, right? Well, the IRS doesn’t make it easy. Most OICs get rejected because people don’t understand the process or submit unrealistic offers. Here’s how to do it right and boost your approval chances.
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