Massachusetts Notice of Intent to Offset Refund Checklist
What This Notice Means
A Massachusetts bank levy is a legal order from the Massachusetts Department of Revenue that directs your bank to hold or turn over money in your account to satisfy state tax liabilities you owe. When you receive this notice, it means the state has already issued the tax levy order to your bank—the bank did not send it to you.
Why the State Sent This Notice
The Department of Revenue sends this notice when a taxpayer owes state taxes and has not paid despite receiving previous collection notice correspondence and demands. State officials typically use this tool after sending standard payment notices and, sometimes, after attempts to collect through wage garnishment or other means have not worked.
What Happens If You Ignore This Notice
If you do not respond to this notice, your bank will hold the funds for 21 days and then transfer them to the state. Continuing to ignore the situation does not make the debt go away—it typically results in the state pursuing additional collection actions.
State officials may pursue wage garnishment, place a tax lien on your property, or take other enforcement steps, depending on the size of the debt and your financial situation. Waiting longer only makes the situation more difficult to resolve, and additional penalties and interest may continue to accumulate on your tax debt.
What This Notice Does Not Mean
Receiving a tax levy notice does not mean criminal charges are being filed against you or that you are going to jail for tax debt. This notice also does not mean the state owns your bank account permanently or that all of your future income will be seized.
A bank levy is a civil collection tool, not a criminal action, and it does not mean your case is beyond resolution. The levy applies to funds in the account at the time the levy is received and to funds held and received during the 60 days for which the levy remains effective.
Understanding the Timeline
Massachusetts law establishes specific time periods for bank levies. Your bank must hold the levied funds for 21 days from the date the levy is received before surrendering them to the Department of Revenue.
During this 21-day holding period, you have an opportunity to notify the Commissioner of errors with respect to the levy. On the first business day after the 21-day holding period, your bank must surrender the levied property, including principal plus any interest earned, up to the amount of the levy, unless the Commissioner releases the levy.
The levy itself remains in effect for 60 days from the date it is first made or until the liability is paid in full or released, whichever occurs first. When the liability is satisfied, state law requires the Commissioner to promptly release the levy and notify the person upon whom the levy was made.
Checklist: What to Do After Receiving This Notice
Step 1: Read the entire notice carefully
Set aside time to read the notice from beginning to end without rushing. Write down the amount owed, the tax year or period the debt relates to, and any deadline dates mentioned in the notice.
Step 2: Understand the 21-day holding period
Contact your bank to confirm when the levy was received and when the 21-day holding period ends. During this time, your bank will not transfer the funds to the state, giving you a window to resolve the situation or notify the Commissioner of any errors.
Step 3: Gather your tax documents
Collect any state tax returns you filed for the year or years mentioned in the notice. Find any payment confirmations, bank statements, or correspondence you have with the state about this debt.
Step 4: Review the debt amount and verify it is correct
Compare the amount listed on the levy notice to any previous notices or bills you received from the state. If the amount seems wrong—for example, if you believe you already paid—write down why you think the amount is incorrect. If you disagree with the underlying tax assessment, you may need to file an abatement application.
Step 5: Determine if you can pay the debt in full immediately
If you have access to funds through another account, family help, or other means, paying the full amount owed will stop the collection process. State law requires the Commissioner to release the levy promptly upon satisfaction of the liability. Contact the state using the phone number listed on the notice and inquire about the payment methods they accept. After paying, request written confirmation that the debt has been satisfied.
Step 6: If you cannot pay in full, contact the Department of Revenue
Call the contact number listed on the notice and explain your financial situation honestly. Ask if the state offers payment plans, partial payment options, or other arrangements for people who cannot pay immediately.
Step 7: Ask about the release of the levy
A levy will be released only if the commissioner determines that such action will facilitate the collection of your tax liability. Installment payment arrangements are one condition under which a levy may be released, but release is discretionary, not automatic.
Step 8: Keep copies of everything
Make copies of the original notice, any written responses you send, confirmation of any payments you make, and any letters or documents you receive from the state. Store these copies in a safe place for your records.
Common Mistakes to Avoid
- Taxpayers should not ignore the 21-day holding period, because doing so may cause them to miss the opportunity to address errors or resolve the debt before the funds are transferred.
- You should not assume that the levy will be automatically released once a payment plan is established; instead, you must submit a written request for the release.
- It is important that you respond within any deadline stated in the notice if you intend to challenge the levy or dispute the underlying tax assessment.
- Many taxpayers confuse the abatement process with levy release procedures; however, an abatement challenges the tax assessment itself, while a levy release addresses the collection action.
Frequently Asked Questions
Can the state levy my spouse’s bank account?
State levy authority applies to accounts held in the name of the person who owes the tax debt. An account solely in your non-debtor spouse’s name, where you have no legal ownership or access rights, would not be subject to levy. However, state law authorizes levies on joint accounts, meaning that both owners' funds may be affected if the account is held jointly.
What if I received this notice by mistake?
Contact the Department of Revenue immediately using the number on the notice. Explain that you believe you are not the person who owes this debt and provide any information that shows the levy was issued in error.
Can I appeal the underlying tax assessment?
The bank levy notice typically means a Notice of Assessment has already been issued. If you received a Notice of Intent to Levy before the actual levy, you may still have time to file an abatement. If you received a Notice of Intent to Assess earlier, you had 30 days to request a pre-assessment conference.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance
