Receiving an IRS Notice of Intent to Seize Your Property or Rights to Property is a serious warning that the IRS may be preparing to take collection action against your assets. Depending on your situation, that could include levies against bank accounts, wages, business assets, or other property.
The good news is that receiving this notice does not automatically mean the IRS will seize your property tomorrow. In many cases, taxpayers still have opportunities to appeal, negotiate a resolution, or otherwise prevent enforced collection action.
Depending on the notice you received, you may be dealing with IRS Letter 1058, LT11, a Final Notice of Intent to Levy, or another collection notice that gives the IRS authority to pursue enforced collection action.
Need help now? Call (410) 358-1500 or visit our Contact Page for a free consultation.
What Does an IRS Notice of Intent to Seize Property Mean?
Put simply, the IRS believes you have unpaid tax debt and is warning that stronger collection measures may follow if the balance remains unresolved.
By the time taxpayers receive a notice involving property seizure or levy action, the IRS has typically already sent multiple collection notices. Unfortunately, many people do not realize the seriousness of the situation until they receive a final notice.
When the IRS refers to your “property or rights to property,” the definition is broad and may include:
- Bank accounts
- Wages and salaries
- Business income
- Accounts receivable
- Investment accounts
- Real estate
- Certain retirement assets
For Annapolis taxpayers, an IRS levy can quickly create financial challenges. A frozen bank account may make it difficult to pay household expenses, cover payroll, pay vendors, or keep a business operating normally.
Is an Intent to Seize Notice the Same as a Tax Levy?
Not exactly.
A Notice of Intent to Seize Property is generally a warning that the IRS may move forward with levy action if the issue is not resolved. A levy is the actual legal process used to take money or property to satisfy a tax debt.
In many situations, taxpayers still have time to act before a levy occurs.
That window can be extremely important because it may allow you to:
- Request a Collection Due Process hearing
- Establish a payment plan
- Pursue an Offer in Compromise
- Seek Currently Not Collectible status
- Challenge certain IRS collection actions
Waiting too long can limit your options and make resolving the matter more difficult.
What Assets Can the IRS Seize?
The IRS has some of the strongest collection powers available to any government agency.
Depending on the circumstances, the agency may seek to collect from:
| Asset |
Potential IRS Action |
| Bank Accounts |
Levy and removal of available funds |
| Wages |
Continuous wage levy |
| Business Income |
Levy on accounts receivable or revenue |
| Investment Accounts |
Seizure of available funds |
| Real Property |
Tax lien and, in limited cases, seizure |
Many Annapolis residents are surprised to learn that the IRS does not need a traditional court judgment before pursuing certain collection actions. Federal tax laws provide the agency with significant authority once the required procedures have been followed.
What Should You Do After Receiving an Intent to Seize Notice?
Your first step should be to carefully review the notice and identify any response deadlines.
Many taxpayers panic after receiving an IRS seizure notice. Others make the opposite mistake and assume they can deal with the issue later. Neither approach is helpful.
Instead, consider taking the following steps:
- Review the notice carefully.
- Identify the tax years involved.
- Gather previous IRS correspondence.
- Confirm whether a deadline applies.
- Avoid transferring or hiding assets.
- Speak with an experienced tax attorney.
The earlier you address the issue, the more opportunities you may have to protect your property and resolve the underlying tax debt.
Can You Stop an IRS Property Seizure?
Possibly.
Several tax resolution options may help stop or delay collection activity, depending on your circumstances.
Collection Due Process Appeals
Taxpayers often have the right to request a Collection Due Process (CDP) hearing after receiving certain levy notices.
A successful appeal may allow you to challenge the collection action or pursue an alternative resolution before the IRS moves forward.
Installment Agreements
In some cases, establishing a formal payment plan can prevent further collection activity.
An installment agreement allows taxpayers to pay qualifying tax debts over time rather than through immediate collection measures.
Offer in Compromise
An Offer in Compromise allows eligible taxpayers to settle certain tax debts for less than the full amount owed.
Not everyone qualifies, but this option may be available when paying the full balance would create significant financial hardship.
Currently Not Collectible Status
If your financial situation prevents you from making payments, the IRS may temporarily suspend collection efforts by placing your account in Currently Not Collectible status.
This does not eliminate the debt, but it may provide temporary relief while you address your financial circumstances.
Why Do Annapolis Taxpayers Receive Intent to Seize Property Notices?
Most taxpayers do not go from owing taxes to facing a potential levy overnight.
In many cases, the problem develops over months or years. A missed tax filing, an unpaid balance, a business setback, or a financial hardship can eventually lead to escalating IRS collection activity.
Common situations that may result in an Intent to Seize Property notice include:
- Unpaid federal income taxes
- Self-employment tax debt
- Payroll tax liabilities
- Unfiled tax returns
- Audit assessments
- Penalties and interest that continue to grow over time
Annapolis residents and business owners often contact our firm after receiving a notice they do not fully understand. By that point, the IRS may already be preparing to move beyond routine collection letters.
What Happens If You Ignore an IRS Intent to Seize Notice?
Ignoring the notice is rarely in your best interest.
While every case is different, failing to respond may allow the IRS to continue pursuing collection action against your assets.
Potential consequences may include:
- Bank account levies
- Wage garnishments
- Federal tax liens
- Seizure of business assets
- Collection of accounts receivable
- Increased penalties and interest
The IRS generally has significantly more collection options available once taxpayers miss important response deadlines.
Put simply, the earlier you act, the more opportunities you may have to resolve the issue before enforcement actions begin.
Can Small Business Owners Be Targeted for Property Seizures?
Yes.
Business owners throughout Annapolis and Anne Arundel County can face additional risks when tax problems involve payroll taxes, business income taxes, or unpaid employment tax obligations.
Depending on the circumstances, the IRS may pursue:
- Business bank accounts
- Accounts receivable
- Business equipment
- Certain company assets
Business tax matters can become especially complex because collection activity may affect ongoing operations, employees, customers, and vendors.
If you own a business and receive a notice involving potential asset seizure, it is important to understand your options as quickly as possible.
How Can a Tax Attorney Help After Receiving a Seizure Notice?
Many taxpayers are unsure whether they need legal representation after receiving an IRS collection notice.
The answer depends on the amount owed, the stage of the collection process, and the complexity of your situation.
A tax attorney may be able to:
- Review the IRS notice and deadlines
- Determine whether appeal rights exist
- Communicate directly with the IRS on your behalf
- Pursue collection alternatives
- Negotiate payment arrangements
- Seek removal of levies in appropriate cases
- Develop a long-term tax resolution strategy
The goal is not simply to respond to the notice, but to identify the strategy that best protects your assets and financial future.
Frequently Asked Questions
How much time do I have to respond to an IRS Intent to Seize Property notice?
The deadline depends on the specific notice you received. Some notices provide important appeal rights that must be exercised within a limited period of time. Review the notice carefully and seek guidance as soon as possible.
Can the IRS seize my home in Annapolis?
Although residential property seizures are relatively uncommon, the IRS does have the authority to pursue certain real estate assets in appropriate circumstances. More commonly, taxpayers encounter tax liens, bank levies, or wage garnishments.
Can the IRS freeze my bank account?
Yes. Through a bank levy, the IRS may freeze funds in an account and ultimately collect those funds if the matter is not resolved within the applicable timeframe.
Can I stop an IRS levy after receiving a notice?
Possibly. Depending on your circumstances, options such as appeals, installment agreements, Offers in Compromise, or other collection alternatives may help prevent or delay enforcement action.
Do I have options if I cannot afford to pay my tax debt?
Yes. Some taxpayers may qualify for payment plans, settlement programs, or Currently Not Collectible status based on their financial situation.
Can Juda Law help taxpayers in Annapolis?
Yes. Juda Law assists individuals and businesses in Annapolis, Anne Arundel County, and surrounding communities with IRS collection matters, tax debt resolution, levy defense, and other federal tax controversies.
Get Help Before the IRS Takes Further Action
An IRS Intent to Seize Property or Rights to Property notice is a warning that should be taken seriously. Waiting too long may reduce your options and increase the risk of enforced collection activity.
If you have received a levy notice, seizure notice, or other serious IRS correspondence, speaking with a tax attorney now may help you understand your rights and available resolution options. Contact Gabaie & Associates, LLC at (410) 358-1500 or visit our Contact Page for a free consultation.
