En esta noticia
Many taxpayers believe that a bank account or property levy can only occur after a lawsuit or an order issued by a judge. However, in federal tax matters there is a much faster procedure that can initiate forced collection actions without the need to go through a court.
It all begins with a notice known as a Final Notice of Intent to Levy, one of the most important documents that the Internal Revenue Service (IRS) can send to a person with outstanding tax debts.
The final IRS notice that absolutely no one should ignore
The Final Notice of Intent to Levy is the last formal warning that the IRS sends before starting collection measures against the taxpayer’s assets. In the document, the agency informs:
- The amount of the outstanding tax debt
- The accumulated interest and penalties
- The intention to levy assets if the situation is not brought up to date
- The rights the taxpayer retains
Receiving this letter means the case is already in an advanced collection stage.
IRS activates automatic and immediate levies on all those who did not respond on time
After receiving the Final Notice of Intent to Levy, the taxpayer generally has 30 days to:
- Pay the debt
- Request an administrative hearing
- Negotiate a payment plan
- File legal objections
If no action is taken within that period, the IRS can move forward with forced collection measures.
Does the IRS have the legal authority to proceed with levies without a lawsuit?
One of the most striking features of the U.S. tax system is that the IRS has broad administrative powers to collect taxes. Therefore, in most cases:
- It does not need to file a lawsuit
- It does not require a prior judgment
- It can carry out levies through administrative procedures authorized by law