A levy is a legal seizure of your property to satisfy a tax debt. Levies are different from liens. A lien is a claim used as security for the tax debt, while a levy actually takes the property to satisfy the tax debt.

If you do not pay your taxes (or make arrangements to settle your debt), the IRS may seize and sell any type of real or personal property that you own or have an interest in. For instance,

• We could seize and sell property that you hold (such as your car, boat, or house), or
• We could levy property that is yours but is held by someone else (such as your wages, retirement accounts, dividends, bank accounts, licenses, rental income, accounts receivables, the cash loan value of your life insurance, or commissions).

We usually levy only after these three requirements are met:

• We assessed the tax and sent you a Notice and Demand for Payment;
• You neglected or refused to pay the tax; and
• We sent you a Final Notice of Intent to Levy and Notice of Your Right to A Hearing (levy notice) at least 30 days before the levy. We may give you this notice in person, leave it at your home or your usual place of business, or send it to your last known address by certified or registered mail, return receipt requested. Please note: if we levy your state tax refund, you may receive a Notice of Levy on Your State Tax Refund, Notice of Your Right to Hearing after the levy.

What is the notice telling me?

We previously sent a notice of levy to you to collect money from the taxpayer named in the letter, but have received no response.

What do I have to do?

If you previously responded, complete the information and mail it to us in the enclosed envelope. You are legally responsible for responding to the levy and must send us the amount you owe the taxpayer(s), not to exceed the amount on the levy. Failure to do so could result in you being personally liable to us for the amount you owe the taxpayer. A penalty of up to 50% of the tax owed may also be imposed.

How much time do I have?

Respond at your earliest convenience by correspondence or you may call the phone number provided on the letter for additional assistance or to let us know that you do not owe funds to this taxpayer.

What happens if I don't respond to the levy?

You are legally responsible for responding to the levy and must send us the amount you owe the taxpayer(s), not to exceed the amount on the levy. Failure to do so could result in you being personally liable to us for the amount you owe the taxpayer. A penalty of up to 50% of the tax owed may also be imposed.

Who should I contact?

Either call the number provided in the letter or respond in writing using the enclosed envelope.

What if I don't agree or have already taken corrective action?

Contact us by phone to resolve any concerns or outstanding issues related to the levy you received previously.