What Is Intent to Levy?

Intent to levy is a legal concept used by the government to state that they are preparing to act on collecting a debt. This is notified to a debtor through a document called a Notice of Intent to Levy. It explains the amount that is being collected and how the amount owed must be paid.

When someone fails to pay taxes on time, the IRS is empowered to levy wages, bank accounts, and other assets in order to collect debts. This is called an “intent to levy”. The government sends out the Notice of Intent to Levy to inform the debtor that they have been identified as the target of an intent to levy and that they must take immediate action to resolve the debt.

What Are the Consequences of Not Resolving Intent to Levy?

When an individual or business receives a Notice of Intent to Levy from the IRS, they should take action quickly to resolve the issue. Failing to do so could have serious consequences, including wage garnishments, levying of bank accounts, or seizure of property. The debtor is also barred from making certain tax elections or making modifications to their assets, and the debt cannot be discharged in bankruptcy.

What Should I Do if I Receive an Intent to Levy?

If you receive a Notice of Intent to Levy, then it is first and foremost important to recognize these are serious matters that cannot be ignored. The most efficient option is to contact an experienced tax attorney or accountant to discuss your case. An attorney or accountant can advise you on the best way to proceed, and they may be able to help you reach an agreement with the IRS.

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For an individual or business, receiving an Intent to Levy can be a frightening experience. It’s important to understand your legal rights and the consequences of not taking action. Understanding the issues and consulting a professional to provide guidance can be the best course of action.

Related Legal Concepts

Understanding intent to levy connects closely with the broader legal concept of levy, which refers to the actual seizure of assets to satisfy debts. The government’s intent in tax collection matters differs from other legal contexts like specific intent in criminal law or donative intent in estate planning. When dealing with tax enforcement actions, the concept of intent plays a crucial role in determining the government’s legal authority and the taxpayer’s rights in the collection process.

The Bottom Line

An intent to levy represents a serious government collection action that requires immediate attention from taxpayers. Understanding this process helps individuals and businesses recognize the urgency of addressing tax debts before the government proceeds with actual asset seizure. For guidance specific to your situation, always consult a qualified, licensed attorney.