LT39: Understanding the Urgent Levy Warning and How to Respond
Introduction to IRS Notice LT39
The LT39: Urgent Levy Warning is an IRS notice that requires immediate attention. This notice alerts taxpayers that the IRS intends to levy their assets due to overdue tax payments. It's essential to understand the implications of this notice and how to respond appropriately to prevent severe financial repercussions.
What is IRS Notice LT39?
Notice LT39 serves as a final reminder before the IRS exercises its right to seize your assets to satisfy unpaid tax debts. This includes funds in your bank accounts, wages, and other personal property. The notice typically follows several prior communications from the IRS about owed taxes and indicates that previous attempts to collect payments have been unsuccessful.
Legal Basis
The IRS is authorized to levy property under Internal Revenue Code (IRC) Section 6331. The LT39 notice is a formal communication that informs the taxpayer of their imminent levy and provides a final opportunity to resolve their tax liability before further action is taken.
Implications of Receiving an LT39 Notice
Receiving an LT39 notice is a serious situation that demands urgent attention. Failing to address it can result in the IRS seizing your assets, significantly impacting your financial stability and credit rating. Once a levy is in place, reversing it can be challenging and time-consuming.
Immediate Effects
- Freezing of bank accounts and potential withdrawal of funds
- Garnishment of wages from your employer
- Seizure of personal property, such as vehicles or real estate
Steps to Take Upon Receiving LT39
Upon receiving an LT39 notice, it is crucial to act quickly and follow these steps:
1. Do Not Ignore the Notice
Ignoring the LT39 will not make it disappear. Prompt action is required to prevent further escalation.
2. Verify the Details
Review the notice carefully to ensure that all details are accurate. Confirm the amount owed and compare it to your records.
3. Contact the IRS Immediately
Reach out to the IRS using the contact information provided in the notice to discuss your options. This conversation is vital to demonstrate your willingness to resolve the issue.
4. Explore Payment Plans
The IRS offers several payment plan options, such as Installment Agreements and the Fresh Start Program, which can help manage your tax debt without levying your assets.
5. Submit Documentation
If you believe the levy is unjustified, you may need to provide documentation to support your case or file an appeal under IRS Publication 1660.
6. Consult a Tax Professional
Engaging a tax relief professional can provide expert guidance tailored to your specific circumstances, potentially saving you money and preventing asset seizure.
IRS Programs That Can Help
Offer in Compromise (OIC)
An OIC allows you to settle your tax debt for less than the full amount you owe. Meeting eligibility criteria and submitting IRS Form 656 along with a financial disclosure (Form 433-A or 433-B) is essential. More details can be found on the IRS website.
Innocent Spouse Relief
If your tax debt stems from your spouse's actions, Innocent Spouse Relief might allow you to relieve your liability. You must file IRS Form 8857 for this purpose.
Collection Due Process (CDP) Hearing
Requesting a CDP hearing within 30 days of receiving the LT39 allows you to negotiate payment terms or dispute the tax liability formally.
Conclusion
The LT39 notice represents a critical juncture in your dealings with the IRS. Ignoring it can lead to dire financial consequences. It is essential to act quickly, understand your options, and seek professional guidance if necessary.
Take action now by visiting our dashboard for professional help to navigate your IRS notice and achieve a resolution.