LT39: Urgent Levy Warning
Understanding the LT39 Notice
The LT39 notice, also known as the 'Urgent Levy Warning,' is a formal communication sent by the Internal Revenue Service (IRS) to inform taxpayers of impending levy actions due to unpaid taxes. This notice signifies that previous attempts to collect overdue payments have failed, and immediate action is required to avoid the levy of assets such as bank accounts, wages, or other property.
The Implications of Receiving an LT39
Receiving an LT39 is a critical moment for any taxpayer. It indicates that the IRS is on the brink of taking aggressive action to collect the owed amounts. A levy is distinct from a lien; while a lien is a legal claim against your property to secure payment, a levy actually seizes the property to satisfy the tax debt.
IRS Collection Process
The IRS typically follows a structured collection process, giving the taxpayer multiple opportunities to resolve their tax debt. The LT39 is usually preceded by notices of unpaid taxes and requests for payment. Here is the generally recognized progression:
- Notice CP14: Initial Notice of Tax Due
- Notice CP501-503: Reminder of Balance Due
- Notice CP504: Intent to Levy
- Form 668-W: Notice of Levy on Wages, Salary, and Other Income
The LT39 signifies that previous notifications have been ignored or inadequately addressed.
Immediate Steps to Take Upon Receiving an LT39
1. Understand the Notice: Review the detailed information in the LT39 for accuracy. Verify the amount the IRS claims you owe.
2. Contact the IRS: It's crucial to communicate with the IRS promptly. The phone number and contact details are usually listed on the notice. Direct dialogue can sometimes delay levy actions.
3. Explore Payment Options: Consider alternative payment arrangements if you cannot pay the full amount. The IRS may offer options such as:
- Installment Agreement: Allows payment in monthly increments.
- Offer in Compromise: Settle your tax liability for less than the full amount if you qualify under specific conditions. [Source: IRS Offer in Compromise]
- Hardship Status: Demonstrate inability to pay due to financial hardship, delaying collection activities.
4. Consult a Tax Professional: Given the severity of the situation, obtaining expert assistance can be invaluable. A tax relief professional can help navigate the complexities of the IRS system, negotiate on your behalf, and protect your assets.
Preventing Future Levy Actions
To prevent recurrence of such situations, consider the following proactive measures:
- Maintain Communication: Keep in touch with the IRS regarding any financial difficulties in paying taxes.
- Review Financial Status: Regularly assess your financial situation and tax obligations.
- File Timely Returns: Ensuring timely and accurate tax filings can prevent complications.
- Staying Informed: Keep abreast of any tax law changes or IRS procedure updates that might impact your obligations.
Conclusion
The LT39 Urgent Levy Warning is a serious notification that demands prompt attention and action. Ignoring it can lead to significant financial disruptions. By understanding the notice, exploring available options, and engaging professional tax relief assistance, taxpayers can effectively address their liabilities and avoid detrimental levy actions by the IRS.
If you have received an LT39 or any other distressing IRS notice, visit our dashboard for expert assistance tailored to your needs.