Tax Help Question – IRS Notice

Question: I owe taxes and received an IRS notice.  It says Intent to Levy.  I am freaked out that the IRS will take my paycheck and empty my bank account. What does the letter mean?

Answer: The letters you receive from the IRS are meant to be scarey.  The letters are sent certified mail.  The letters are thick with a bunch of papers that say who knows what.  As long as the letter does not say, “Final Notice of Intent to Levy and Notice of Your Right to a Hearing,” then you are OK for now.  If you do receive a final notice, the IRS will have the authority to issue a levy to your employer, bank, and customers after 30 days from the date of the letter.  I recommend you address your taxes immediately if you receive an IRS final notice.

IRS Circular 230 Disclosure: To the extent this writing contains advice on a federal tax issue, the advice is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed in this communication.