Are You At Risk of a Levy?

Craig Thomas

Craig Thomas

Managing Partner, CPA, Certified Tax Resolution Specialist at Streamline Tax Resolution, llc
Craig Thomas

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Are you or, someone you know at risk of getting hit by an IRS Levy?

If you owe the IRS back taxes, the answer to that question is easy – “YES!”

Now that we got that out of the way, you might now be wondering – “How long do I have before the IRS aggressively pursues me?

Well, the answer to that question is hard to say. Typically, the timing of enforced collections depends on the IRS’ available staffing. But be sure of this, if you have an outstanding tax debt, you are on borrowed time.

Below, are 4 of the most obvious warning signs that you are in immediate risk of an IRS levy.

  1. The IRS sent you the following collection notice: “Final Notice of Intent to Levy and Notice of Rights to an Appeals Hearing

I call this the 30-Day notice. This letter is notifying you that they (IRS) are in the beginning stages of forcibly collecting your tax debts. You have 30 days from the date of this letter to resolve your tax issue or the IRS will take action.

Most levies can be avoided if the taxpayer takes immediate action upon receiving this letter. Unfortunately, a number of taxpayers choose to ignore IRS correspondences. Well, I’m here to say, that’s a terrible strategy

2.  The IRS has given you a deadline for deliverables, but you’re dismissive towards their timetable

I’ve negotiated with the IRS for many years.  So take my word when I say that their deadlines are not bluffs. If you’ve made arrangements to fulfill the IRS’ requests (financial statements, filing tax returns, etc.), you must follow through timely.

Once the deadline has past, the next time you can expect to hear from them is when they levy your accounts.

3.  You were contacted by an IRS Revenue Officer (RO), but you dodged them  

Revenue Officers are local, and their main function is to enforce collection actions on the outstanding tax liabilities of businesses, Sole Proprietors, and individuals owing over $100,000. If your case is assigned to an RO, you should first expect an unannounced visit to your residence, or place of business. Keep in mind, that it is very common for an officer to make such a visit to observe and take note of your apparent assets and lifestyle.

You might be successful in dodging them physically, but eventually, they will catch up with you at your banking institution.

4.  You continue to rack up back tax debt, year after year

As your debt steadily grows, the IRS will steadily apply additional interest & penalties. Eventually, your balance will snowball into a monster of a tax debt.

Procrastination will drastically increase the chances of a levy happening, and the impact of a levy will be worse. The IRS will have no mercy, and negotiating a resolution to the issue will become more challenging.

Final Thoughts

If you have a back tax issue, then you’re at risk of an IRS levy.

The good news is that there are usually options available, which will protect you from this ever happening.

The first step is to arm yourself with as much information on your available options before contacting the IRS. Unfortunately, most people don’t have sufficient time to do the proper research.

Contacting the IRS without a resolution game plan can be a costly mistake you’ll surely regret. The better option is to find a Certified Tax Resolution Specialist who offers a free consultation to determine your next move. If you take action today, you might be able to avoid a levy.

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