From IRS Notice to Levy: How the Collection Process Escalates
A levy does not happen first.
It happens after a series of steps.
Once your return is filed and a balance is assessed, the IRS begins a structured collection process. That process moves through notices, deadlines, and opportunities to respond before enforcement actions are considered.
Understanding that sequence is what allows you to act before the situation escalates.
Now that your return has been filed, the next set of decisions begins. Before IRS processing or planning opportunities are missed, speak with Steve Perry, EA about your situation. Call 678-717-9818, email [email protected], or connect on LinkedIn at www.linkedin.com/in/steveperrybtm.
Where the Collection Process Begins
Collection does not start with enforcement.
It begins with a balance due.
After IRS processing:
• A tax liability is assessed
• Notices are issued outlining the amount owed
• Payment or response options are provided
At this stage, the IRS is seeking resolution, not enforcement.
The Notice Sequence
Once a balance exists, the IRS sends a series of notices.
These typically include:
• Initial balance due notice
• Follow up reminders
• Notices indicating increasing urgency
Each notice reflects a step forward in the process.
Most include a response window, often around 30 days, during which you can take action.
If you are unsure what happens next after filing or whether your return could trigger IRS correspondence, speak with Steve Perry, EA to review your position. Call 678-717-9818, email [email protected], or connect on LinkedIn at www.linkedin.com/in/steveperrybtm.
What Happens When Notices Are Not Addressed
If the balance remains unresolved and notices are not addressed, the IRS continues advancing the case.
This progression can include:
• Additional notices reflecting updated balances
• Formal demand for payment
• Preparation for enforcement actions
At each stage, the opportunity to resolve the issue remains, but the options begin to narrow.
The Final Notice Before Levy
Before a levy can occur, the IRS must issue a final notice.
This notice:
• Informs you of the intent to levy
• Explains your right to a hearing
• Provides a defined response period, often 30 days
This is a critical point in the process.
Responding during this window preserves your ability to challenge or resolve the issue before enforcement begins.
What a Levy Means
A levy is an enforcement action.
It allows the IRS to collect by:
• Taking funds from bank accounts
• Garnishing wages
• Seizing certain assets under specific conditions
A levy is not immediate. It is the result of the process reaching its final stage after prior opportunities were not used.
After filing season ends, many taxpayers miss critical planning windows that affect next year’s outcome. If you want to stay ahead of the process, speak with Steve Perry, EA now. Call 678-717-9818, email [email protected], or connect on LinkedIn at www.linkedin.com/in/steveperrybtm.
Why Timing Changes the Outcome
The earlier you act in the process, the more options you have.
Early stage:
• Payment plans can be established
• Issues can be clarified or corrected
• The process can be managed proactively
Later stage:
• Deadlines are shorter
• Enforcement actions are closer
• Flexibility is reduced
The system is designed to move forward.
Your position within that system determines your options.
From Compliance to Enforcement
The transition from compliance to enforcement is not sudden.
It is gradual.
It begins with notices and response windows.
It ends with actions like levies when those windows pass without resolution.
Understanding that progression allows you to act before enforcement becomes part of the situation.
Closing
A levy is not the starting point.
It is the endpoint of a process that begins after your return is filed and a balance is assessed.
Most situations that reach enforcement do so because earlier notices were not addressed within their response periods.
Knowing how the timeline works allows you to intervene before the process advances.
Before assuming your tax situation is complete for the year, consider having Steve Perry, EA evaluate your next steps and planning opportunities. Call 678-717-9818, email [email protected], or connect on LinkedIn at www.linkedin.com/in/steveperrybtm.
