An IRS Notice of Intent to Levy tells you the agency is preparing to seize your wages, bank accounts, or other property to collect an unpaid tax debt. You generally have 30 days from the date on the notice to pay, arrange payment, or request a hearing that freezes collection while your case is reviewed. What you do in those 30 days matters more than anything else in this process, because the rights you have now largely disappear once the deadline passes.
Check Which Notice You Actually Received
Two different IRS notices are commonly called a “notice of intent to levy,” and they carry different rights. Look at the notice number in the top corner.
If it says CP504, the IRS is warning that it intends to levy your state tax refund and may pursue other property. It gives you 30 days to pay, but on its own it does not grant Collection Due Process hearing rights.1Internal Revenue Service. Notice CP504 A separate notice with hearing rights typically follows.
If it says LT11 or Letter 1058, this is the Final Notice of Intent to Levy. It is the last step before the IRS starts seizing wages, bank funds, or other assets, and it triggers your right to request a Collection Due Process (CDP) hearing.2Internal Revenue Service. Understanding Your LT11 Notice or Letter 1058 The 30-day clock on that hearing request starts the day the notice is dated.
The distinction trips people up constantly. Confirm which one you’re holding before deciding how to respond.
The 30-Day CDP Hearing Deadline
If you received an LT11 or Letter 1058, the single most important date on the page is 30 days from the notice date. Federal law requires the IRS to notify you in writing of your right to a hearing at least 30 days before making any levy.3Office of the Law Revision Counsel. 26 USC 6330 – Notice and Opportunity for Hearing Before Levy Request a hearing within that window and the IRS cannot proceed with the levy while your case is pending before the IRS Independent Office of Appeals.
At the hearing you can challenge whether you actually owe the tax (if you haven’t had a prior opportunity to dispute it), argue that the IRS didn’t follow proper procedures, propose an installment agreement or Offer in Compromise, or show that the levy would create an economic hardship. If Appeals rules against you, you have 30 days from that determination to petition the U.S. Tax Court for review.3Office of the Law Revision Counsel. 26 USC 6330 – Notice and Opportunity for Hearing Before Levy That judicial review is only available if your CDP request was timely.
You file the request using Form 12153, Request for a Collection Due Process or Equivalent Hearing.4Internal Revenue Service. Request for a Collection Due Process or Equivalent Hearing
If You Miss the 30 Days
You can still request an “equivalent hearing” within one year of the notice date. It covers the same ground as a CDP hearing, but two things are gone: the IRS is no longer barred from levying while the hearing is pending, and you cannot take the outcome to Tax Court.4Internal Revenue Service. Request for a Collection Due Process or Equivalent Hearing Treat the 30-day window as a hard deadline.
Your Resolution Options
Whether you request a hearing or deal with the IRS directly, the substantive question is how you’re going to resolve the balance. Several paths exist, and which one fits depends on what you can pay.
Pay in Full
The fastest way to stop everything. Full payment ends collection, stops interest and penalties from growing, and is the most straightforward way to get any existing levy released.
Installment Agreement
Monthly payments spread the debt out. You can apply online if you owe $50,000 or less in combined tax, penalties, and interest and have filed all required returns. Short-term plans of 180 days or fewer have no setup fee when you apply online. Long-term direct-debit plans cost $22 to set up online, $107 by phone or mail. Non-direct-debit plans cost $69 online or $178 by phone or mail. Low-income taxpayers can have the fee waived or reduced.5Internal Revenue Service. Payment Plans; Installment Agreements Once you request an installment agreement, the IRS is generally prohibited from levying while the request is pending.
Offer in Compromise
An Offer in Compromise proposes settling the debt for less than the full amount. The IRS looks at your income, expenses, assets, and ability to pay. Application requires a $205 fee and an initial payment: 20% of a proposed lump sum, or the first monthly payment for a periodic payment offer.6Internal Revenue Service. Form 656 Booklet – Offer in Compromise Low-income applicants are exempt from both. The IRS accepts a relatively small percentage of offers, so it isn’t the right route for everyone.
Currently Not Collectible Status
If paying anything would prevent you from covering basic living expenses like rent, food, and utilities, you may qualify for Currently Not Collectible status. The IRS suspends active collection, including levies, and moves the account to inactive status while you provide financial documentation.7Internal Revenue Service. 5.16.1 Currently Not Collectible Interest and penalties continue to accrue, and the IRS reviews your situation periodically. But the immediate threat of a levy stops.
What the IRS Can Take
The levy authority is broad. It covers wages and salary through ongoing garnishment, funds in bank accounts, accounts receivable, investment accounts, rental income, and commissions. It also reaches physical property including vehicles, boats, and real estate.8Office of the Law Revision Counsel. 26 U.S. Code 6331 – Levy and Distraint Social Security benefits can be reached through a continuous levy that attaches to up to 15% of each payment.9U.S. Government Publishing Office. 26 U.S.C. 6331 – Levy and Distraint Retirement accounts like 401(k)s and IRAs are also reachable, though the IRS generally treats these as a last resort.
When a bank levy hits, the bank freezes the funds in your account that day. Federal law then gives a 21-day waiting period before the bank sends the money to the IRS. That window is your chance to fix errors or arrange payment. The bank will typically charge a processing fee; if the levy was an IRS mistake and you cooperated with the agency beforehand, you can seek reimbursement using Form 8546.10Internal Revenue Service. Information About Bank Levies
What’s Protected
Federal law carves out specific exemptions so a levy doesn’t leave you with nothing.11Office of the Law Revision Counsel. 26 USC 6334 – Property Exempt from Levy Necessary clothing and schoolbooks are fully exempt. Household goods and personal effects are protected up to $6,250 in value. Books and tools needed for your trade are protected up to $3,125. Unemployment benefits, workers’ compensation, and public assistance payments are fully exempt. Wages needed to meet a court-ordered child support judgment are exempt. Service-connected disability benefits and certain federal pension payments cannot be levied.
A portion of wages is always exempt. For 2026, a single filer keeps at least $309.62 per week plus $101.92 for each dependent claimed.12Internal Revenue Service. Publication 1494 – Tables for Figuring Amount Exempt from Levy on Wages, Salary, and Other Income For a single person with no dependents, that works out to roughly $1,238 per month before taxes. Everything above that goes to the IRS until the debt is resolved.
Getting a Levy Released After It Starts
If the IRS has already begun levying your wages or seized funds, you can still act. The IRS is required to release a wage levy that is creating an immediate economic hardship, meaning you can’t meet basic living expenses like housing, food, and medical care.13Internal Revenue Service. What If a Levy Is Causing a Hardship For bank levies, the IRS has discretion to release but is not automatically required to do so. Call the number on the levy notice right away and have your income, expenses, and hardship documentation ready.
A release doesn’t erase the debt. The IRS will still expect you to resolve the balance through a payment plan or other arrangement.13Internal Revenue Service. What If a Levy Is Causing a Hardship
What to Do Now
Confirm the notice type. Mark the 30-day deadline on your calendar. Pull your most recent bank statements and pay stubs so you can talk to the IRS or a tax professional with real numbers in front of you. If the LT11 or Letter 1058 clock is running and you have any question about the debt or your ability to pay, filing Form 12153 preserves every right you have; you can still negotiate a payment plan or Offer in Compromise during the hearing. Ignoring the notice is the one response the IRS is set up to handle without you.