IRS Notice of Intent to Levy: Payment Plan, Offer in Compromise, and Other Relief Options

Receiving a Notice of Intent to Levy from the Internal Revenue Service is a serious matter that requires immediate attention. This formal communication signals that the IRS plans to collect a federal tax balance due by seizing assets, bank accounts, wages, or other possessions if the issue is not resolved within a limited timeframe. Medical tourists from the United Kingdom who have income or property in the United States can be affected by such notices, and understanding the process is essential to protect personal and business interests.

This guide will explain a Notice of Intent to Levy, why it is issued, and the steps to take when one is received. It will also outline payment options, including installment agreements, payment plans, and a payment application. In addition, the article will cover appeal rights, offer-in-compromise applications, and other methods to resolve a tax debt before enforcement begins.

By the end of this resource, readers will know how to identify the amount due, locate additional information on official notices, and determine eligibility for different relief programs. Acting quickly can prevent the seizure of assets and ensure that all required filings and agreements are in place to settle the full amount owed.

Understanding the Notice of Intent to Levy

A Notice of Intent to Levy is the Internal Revenue Service’s formal notification that it intends to collect a federal tax liability through the legal seizure of property. This action can include taking bank accounts, wages, or other assets when a balance due remains unpaid. The notice is issued under Internal Revenue Code section 6331(d) and is sent only after previous billing notices have gone unanswered. For medical tourists from the United Kingdom with U.S. income or property, receiving this notice means the IRS believes an unresolved tax debt must be addressed immediately.

The document outlines the amount due, including taxes, penalties, and interest, and explains the reason for the collection action. It also provides payment options, such as how to pay the full amount, apply for a payment plan, or request an installment agreement. Taxpayers are advised to review any additional information in the notice to confirm its accuracy and understand their liability. For more guidance, see the official IRS – The Collection Process.

• The amount due reflects the original tax obligation plus penalties and interest.
  
  
• The notice describes the specific liability and the proposed action to seize assets or possessions.
  
  
• Instructions explain how to resolve the debt and maintain eligibility for payment options.
  
  
• Appeal procedures and deadlines are clearly stated.
  
  
• Details are included on where to find additional information related to the case.

This notice is more than a standard communication; it is a final step before enforcement. Taxpayers should ensure all required returns have been filed and verify the correct information. Quick action can protect rights, preserve the ability to appeal, and allow time to resolve the debt through available payment plans or settlement programs before the IRS takes possession of property or funds.

Key Terms You Need to Know

Understanding specific terms is essential when responding to a Notice of Intent to Levy. These definitions clarify the IRS processes and programs that can help resolve a federal tax liability while protecting assets from seizure. Medical tourists from the United Kingdom with income or property in the United States should know these terms to make informed decisions.

Installment agreement

• A formal arrangement allowing payment of the full balance due in monthly installments. Taxpayers must have filed all required returns and agreed to IRS payment terms to be eligible.

Offer in Compromise (OIC)

• A program allowing eligible taxpayers to settle tax debt for less than the full amount owed when full payment would create financial hardship or when the liability is in dispute.

Individual online account

• A secure IRS tool to view the amount due, review payment history, apply for a payment, and access additional information about the case.

Collection Due Process appeal

• A right to a hearing before the IRS seizes assets, enabling proposals for payment options or disputes over the liability. For more details on the protection, see the official IRS – Your Rights as a Taxpayer.

Currently Not Collectible status

• A temporary suspension of collection when paying would cause significant financial hardship.

Open bankruptcy proceeding

• A legal process that may halt or delay specific IRS collection actions until the matter is resolved.

Familiarity with these terms will help taxpayers understand available payment options, use the right tools, and act quickly to resolve the issue before enforcement begins.

Immediate Actions to Take Within 30 Days

When a Notice of Intent to Levy is issued, the Internal Revenue Service typically gives 30 days from the date shown on the letter to address the balance due. If no action is taken within this period, the IRS can seize bank accounts, wages, or other assets to collect the federal tax debt. For medical tourists from the United Kingdom with income or property in the United States, quick action is necessary to protect possessions and maintain eligibility for payment options.

Verify the Notice

• Please review the letter to confirm that it is an official IRS document, checking the heading, taxpayer identification, and the amount due.
  
  
• Confirm that the listed tax periods, penalties, interest, and prior payments are accurate.

Gather Your Records

• Assemble filed tax returns, payment receipts, and all correspondence from the IRS.
  
  
• Collect bank account statements, proof of earnings, and information on other assets that could be subject to seizure.

After verifying the notice and preparing your records, contact the IRS immediately. You can do this by calling the number on the notice or using the individual's online account to review the amount due, obtain additional information, and apply for a payment. If you face significant hardship or encounter issues resolving the matter directly with the IRS, you can seek assistance from the independent Taxpayer Advocate Service. This resource can help discuss payment options, clarify application requirements, and guide you through the appeal process when necessary.

Taking action within the 30-day timeframe preserves the right to appeal, gives time to file any required documents, and creates opportunities to resolve the liability before enforcement begins. Prompt communication with the IRS can prevent loss of possession of property and allow time to discuss practical solutions to settle the balance due in a way that fits your financial circumstances.

Payment Options to Stop the Levy

When a Notice of Intent to Levy is issued, the Internal Revenue Service provides several options to resolve the balance due and prevent enforcement actions. The right choice depends on your financial situation, the amount owed, and whether you have filed all required returns. Selecting the correct payment arrangement for medical tourists from the United Kingdom with U.S. income or property can protect assets, bank accounts, and other possessions from seizure.

Pay the Full Amount

• Paying the full amount due immediately stops penalties and interest from accruing and ends the levy process.
  
  
• Payments can be made online, by phone, or through the mail.
  
  
• Using an individual online account allows you to confirm that the payment was processed and to view updated account information.

Installment Agreement

• An installment agreement allows you to pay the balance due in monthly installments.
  
  
• Eligibility depends on the total liability, filing compliance, and ability to meet payment terms.
  
  
• You can apply for a payment through the IRS website or by submitting the required application form.

Offer in Compromise (OIC)

• If you qualify, this program may let you settle the tax debt for less than the full amount.
  Before deciding, the IRS will review your income, necessary living expenses, and assets.
  
  
• All required returns must be filed before the application is submitted. For official guidance, visit the IRS – Offer in Compromise.
  
  

Other Payment Arrangements

• Short-term payment plans are available for taxpayers with smaller balances due.
  
  
• These can often be set up quickly using IRS tools without a formal agreement.
  
  
• While they do not eliminate the liability, they may provide additional time to pay the full amount.

Selecting the most suitable option requires an honest review of your financial position and the potential impact on your eligibility for other relief programs. Acting quickly ensures that the agreement or payment arrangement is in place before the IRS moves forward with enforcement measures.

Individual Online Account

The Internal Revenue Service provides an online account allowing taxpayers to view and manage their federal tax information securely. For medical tourists from the United Kingdom with income or property in the United States, this tool offers direct access to essential details when addressing a balance due after receiving a Notice of Intent to Levy. It helps track payments, check the amount due, and find additional information necessary for resolving a tax debt before enforcement begins.

Checking Your Federal Tax Balance

• You can log in to the individual online account to see the current amount due, including taxes, penalties, and interest.
  
  
• Review posted payments to ensure they have been applied correctly to the liability.
  
  
• Access the account history to understand prior actions and changes in balance due.

Accessing Additional Information and Tools

• View official notice details to confirm the accuracy of the amount due and filing requirements.
  
  
• Use IRS tools to apply for a payment plan, submit an installment agreement application, or make a one-time payment.
  
  
• Check the status of pending applications or agreements to ensure they remain in good standing. For secure access, visit the official IRS – View Your Account.

Using the individual online account ensures you have the most current information before contacting the IRS. It allows you to prepare accurate responses, maintain compliance with agreement terms, and avoid missed deadlines that could lead to the seizure of assets or bank accounts. Regular use of this tool can make managing payment options and resolving a federal tax issue more efficient.

Installment Agreement

An installment agreement is a formal payment arrangement with the Internal Revenue Service that allows taxpayers to pay the balance due in monthly installments instead of a single lump sum. For medical tourists from the United Kingdom with U.S. income or property, this option can help prevent the seizure of bank accounts, wages, or other assets after receiving a Notice of Intent to Levy. It provides a structured way to resolve the tax debt while protecting possessions and meeting essential living expenses.

Eligibility and Requirements

• All required tax returns must be filed before applying for an installment agreement.
  
  
• The total liability, including taxes, penalties, and interest, must meet IRS program thresholds for the specific type of agreement requested.
  
  
• You must demonstrate the ability to make the agreed monthly payment without defaulting.

How to Apply for an Installment Agreement

• You can apply for a payment through the IRS website using your online account or submit the appropriate paper application form.
  
  
• Provide accurate financial information, including income, necessary living expenses, and a list of assets, so that the IRS can determine eligibility.
  
  
• Review the proposed agreement before accepting to ensure a realistic and sustainable payment amount.

Maintaining the Agreement

• Make all monthly payments on or before the due date.
  
  
• File all future tax returns on time and fully pay any new balances to remain compliant.
  
  
• Regularly monitor your account for updates, requests for additional information, or changes in agreement status.

An installment agreement can stop levy actions and allow you to pay the full amount due under manageable terms. Applying promptly and complying with all requirements ensures continued protection from enforcement measures.

Apply for a Payment

Applying for a payment with the Internal Revenue Service is a straightforward way to address a balance due and avoid levy action. For medical tourists from the United Kingdom with U.S. income or property, this process allows you to arrange short-term or long-term payment options, such as an installment agreement, when paying the full amount immediately is impossible. Acting quickly after receiving a Notice of Intent to Levy is essential to protect assets and maintain eligibility for relief.

When to Apply

• Submit your application as soon as possible after receiving the notice to preserve your right to appeal.
  
  
• If you cannot pay the full amount due, request payment terms you can reasonably maintain.

How to Apply

• Use your online account or the IRS payment application tool to file your request.
  
  
• Please provide complete financial details, including income, expenses, and a list of assets, to support your application.
  
  
• Respond promptly to any IRS requests for additional information.
  
  

Documents You Will Need

• Copies of all filed tax returns related to the liability.
  
  
• Proof of income from wages, self-employment, or other sources.
  
  
• Bank statements and details of other assets in your possession.

Submitting a complete, accurate application helps ensure approval and allows you to manage your payment terms without risking default. This step can promptly stop enforcement measures and provide a path to resolve your federal tax debt on terms that fit your financial situation.

Other Relief Options if You Can’t Pay in Full

When paying the full amount due is impossible, the Internal Revenue Service offers several relief options to help people avoid levy actions and manage a federal tax liability. For medical tourists from the United Kingdom with income or property in the United States, these programs can provide significant protection while you work toward resolving the balance.

Currently Not Collectible (CNC) Status

• This status pauses collection activity when making a tax payment would cause significant financial hardship.
  
  
• To qualify, you must enter complete and accurate financial information on the required IRS forms and provide supporting documentation.
  
  
• Penalties and interest will continue to accrue until the debt is resolved.

Open Bankruptcy Proceeding

• Filing for bankruptcy may stop or delay IRS collection actions, depending on the type of bankruptcy and the nature of the liability.
  
  
• The IRS will review the bankruptcy filing to determine whether collection must be suspended.

Selling or Refinancing Assets

• Selling property or refinancing existing loans can generate funds to reduce the amount due.
  
  
• Proceeds from these transactions can be applied directly toward the tax debt to halt further enforcement.

Penalty Abatement

• The IRS may remove specific penalties if you show reasonable cause or qualify under first-time abatement rules.
  
  
• Requests must include all required evidence and be submitted in writing.

Before applying for any program, confirm that all details have been reviewed and that the page's last reviewed or updated date on IRS guidance confirms you are using the most current information. Acting promptly and submitting complete applications increases the likelihood of approval and helps protect your assets from seizure.

Your Legal Rights and How to Appeal

Receiving a Notice of Intent to Levy does not mean the Internal Revenue Service can immediately seize assets. Every person has legal rights, including the right to request a hearing and dispute certain parts of the case. For medical tourists from the United Kingdom with income or property in the United States, understanding these protections can help safeguard bank accounts, wages, and other assets while working to resolve the tax debt.

Requesting a Collection Due Process Hearing

• You have 30 days from the date on the notice to enter your request using IRS Form 12153.
  
  
• Filing the form preserves your right to appeal before the IRS proceeds with enforcement.
  
  
• During the hearing, you may propose payment options, such as an installment agreement or offer in compromise, and submit additional information that supports your position.

Equivalent Hearings

• If you miss the 30-day deadline, you may request an equivalent hearing within one year of the notice date.
  
  
• This option allows you to present evidence and discuss solutions, but does not provide the right to petition the U.S. Tax Court if you disagree with the decision.

Preparing for the Appeal

• File all required returns and ensure financial documentation is complete before the hearing.
  
  
• Gather proof of income, necessary living expenses, and asset values.
  
  
• Review the amount due carefully to confirm it matches your records and make any corrections before presenting your case.

Using the appeal process effectively can delay levy actions while you arrange a suitable tax payment plan. Always ensure the IRS guidance you rely on has been reviewed recently and includes a page with a last reviewed or updated date to confirm you are using accurate and current information.

Common Mistakes and How to Avoid Them

Responding to a Notice of Intent to Levy demands careful attention to deadlines, complete documentation, and clear communication with the Internal Revenue Service. For medical tourists from the United Kingdom with income or property in the United States, avoiding errors can prevent the seizure of bank accounts, wages, or other assets and help resolve the tax debt more efficiently.

Ignoring the Notice

• Failing to act within 30 days forfeits your right to appeal before enforcement begins.
  
  
• Enter your request for a hearing or set up a tax payment plan immediately.

Missing Filing Deadlines

• Late filing of required tax returns or forms can result in ineligibility for relief programs.
  
  
• File all timely returns to qualify for an installment agreement or other payment options.

Providing Incomplete Information

• Submitting forms without complete financial details or supporting documents causes delays or denials.
  
  
• Ensure all information is accurate and reviewed before submission.

Choosing Unaffordable Terms

• Agreeing to a payment arrangement that cannot be maintained may lead to default and renewed enforcement.
  
  
• Review your budget carefully before entering an agreement.

Not Using Available Resources

• To ensure accuracy, use the IRS website for additional information and confirm the page's last reviewed date.
  
  
• Access your online account to check the amount due and securely enter applications.

By avoiding these mistakes, a person can maintain possession of property, keep agreements in good standing, and work toward fully resolving the federal tax liability.

Additional Information

Using accurate and current resources is vital when responding to a Notice of Intent to Levy. The Internal Revenue Service provides official materials that explain your rights, outline payment options, and clarify the steps involved in the collection process. For medical tourists from the United Kingdom with U.S. income or property, these resources help ensure that the amount due is correctly calculated and that all actions are based on the most recent guidance.

Official IRS Publications

• IRS Publication 594 explains the collection process, available payment options, and potential enforcement actions if a tax debt remains unresolved.
  
  
• IRS Publication 1 outlines taxpayer rights, including the right to appeal and request additional information.
  
  
• Always check the page's last reviewed or updated date to confirm the content has been reviewed recently and reflects current law.

Independent Assistance Services

• The Taxpayer Advocate Service provides free, confidential help for taxpayers experiencing hardship or delays.
  
  
• Low Income Taxpayer Clinics assist eligible individuals in resolving disputes with the IRS, including levy actions.
  
  
• These services can guide you through entering the correct application process, filing necessary forms, and understanding tax payment obligations.

Before relying on advice, ensure the resource applies to your circumstances, that all details have been reviewed for accuracy, and that deadlines are met. Having current, reliable information can help you make informed decisions, protect your assets, and resolve liability in compliance with IRS requirements.

Frequently Asked Questions

How much time do I have to respond to a Notice of Intent to Levy?

You have 30 days from the date on the notice to act before the IRS can begin enforcement. This period allows you to enter an installment agreement, apply for a payment, or file an appeal. Acting within the deadline preserves your rights and may stop levy actions. Use your online account to confirm the amount due and review additional information before taking any steps.

Can the IRS take all of my wages or bank account funds?

No, the IRS must leave you with a portion of your wages and may only seize funds over exemptions. The exempt amount depends on your filing status and the number of dependents. Levy actions on bank accounts remove available funds after legal exemptions. Use your online account to track the amount due and review any levy details applied to your accounts or other assets.

What is an installment agreement, and how does it work?

An installment agreement is an IRS payment plan allowing you to pay the balance over time. You can apply for a payment online, by mail, or through the IRS application tool. All required returns must be filed before approval. Once entered, you must make each tax payment on time. Monitoring your agreement in your online account helps you remain compliant and avoid defaulting on the arrangement.

Can I settle for less than the full amount?

Yes, the IRS offers an offer in compromise program for qualifying taxpayers. This settlement option may reduce the balance if you prove financial hardship or dispute the liability. All required returns must be filed before applying. The IRS reviews your income, assets, and expenses to determine eligibility. Visit the official IRS Offer in Compromise page to enter your application and review the criteria for approval in detail.

Where can I find additional information about my case?

You can find guidance on the IRS website, in official publications, and through online tools. Always check the page's last reviewed or updated date to ensure you rely on current rules. Your online account provides details on your amount due, payment history, and available relief programs. Reviewing these resources regularly helps you understand your options, maintain compliance, and avoid missed deadlines that could lead to levy actions.

What should I do if I cannot pay at all?

If paying any amount would cause significant hardship, request Currently Not Collectible status from the IRS. You must enter complete financial information and provide documentation of your situation. While in this status, penalties and interest continue to accrue, but enforcement stops temporarily. Use your online account to monitor your case, confirm the amount due, and review additional information to ensure your request is processed accurately and immediately.