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Actions & Restrictions on Levy |
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Levy Additional Information:
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Background, Pre-Levy Actions & Restrictions on Levy
5.11.1 Background, Pre-Levy Actions & Restrictions on Levy
5.11.1.1
(01-19-1999)
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| If | And | Then |
|---|---|---|
| Action Code CLnn (nn is a two digit number) is on the ACS transcript. | This Code is the same date as the LT11. | The LT11 was not sent. |
| Action Code MCLT is on the transcript. | The LT11 is the most recent LTnn (nn is a two digit number) before the MCLT. | The LT11 was not sent. |
- AC 066 - the return receipt was signed (not necessarily by the taxpayer) , so the notice was delivered. See second Note in IRM 5.11.1.2.2.2(6)
- AC 067 - delivery was refused or the notice was unclaimed
- AC 068 - the notice was returned, undelivered
Note:
Action Codes 066–069 can not be input on IRAF modules.
5.11.1.2.2.2 (07-26-2002)
Issuing Notice of Intent to
Levy/Notice of a Right to a
Hearing in CFf
-
When levy is the next planned
action, the revenue officer must
first issue a Notice of Intent
to Levy/Notice of a Right to a
Hearing (Letter 1058) before a
notice of levy is issued, unless
collection is in jeopardy or ACS
already issued an LT11 for all
of the periods included in the
levy.
Example:
The taxpayer provides a Collection information Statement to the revenue officer who determines that the taxpayer may qualify for:
- an installment agreement but does not agree to an acceptable monthly payment or
- an offer in compromise but does not submit one.
As a result, the revenue officer determines that levy is the next planned action to collect the amount owed and issues L1058.
-
L1058 is both a notice of a
right to a hearing and a notice
of intent to levy. Envelope
E-44B can be used to mail it, if
a window envelope can be used.
See IRM 5.11.1.2.2.3. With these
letters include the following,
- Publication 594 (Understanding the Collection Process)
- Publication 1660 (Collection Appeal Rights)
- Form 12153 (Request for a Collection Due Process Hearing)
- A copy of the letter, and
- A return envelope
Caution:
The date on the L1058 MUST be the date it is given to, left for, or mailed (return receipt requested) to the taxpayer.
Caution:
If the L1058 is sent but mistakenly is not sent to the taxpayer's last known address, issue another L1058 to substitute for the one that was not sent to the last known address. Release any levies that had been served for the liabilities included in the improperly mailed L1058. Also, see IRM 5.11.1.2.1.1 and 5.11.2.3, Returning Levied Property to the Taxpayer.
Reminder:
If the taxpayer has an authorized representative, a copy of correspondence to the taxpayer must also be given to the representative. Use regular mail for the copy.
Note:
In addition to ACS and CFf, a Collection Due Process Notice may be issued by master file for the State Income Tax Levy Program (SITLP) or the Federal Payment Levy Program (FPLP). See IRM 5.11.7, Automated Levy Programs.
-
Issue the L1058 only after at
least one attempt to contact the
taxpayer. Usually, initial
contact will be a field call.
Exception:
An attempt to contact the taxpayer before sending an L1058 is not necessary if,
- The taxpayer is in another country
- The taxpayer is dead (try to contact the administrator/executor of the estate, if one can be found)
- There has already been an attempt to contact the taxpayer, an L1058 or LT11 was sent, and then additional modules were received
- The taxpayer can not be located
- No telephone number can be found, and the taxpayer is either potentially dangerous or lives in a remote location, where field calls are rarely made, or
- The levy is issued in a computer program in which files of liabilities are matched against files of income/assets (not merely a computer match to identify levy sources) e.g., levy on state tax refunds
-
Do
not issue the L1058, unless
there is a levy source, and levy
is the next planned action. See
IRM 5.7.8.3(6),
Working
Repeater Trust Fund Taxpayers,
for an exception when working
repeater trust fund taxpayers.
Also, do not issue it if there
is a restriction that would
prohibit levies when the 45 day
waiting period (30 days plus a
15 day tolerance) runs out. See
IRM 5.11.1.3. If the restriction
has an ending date, the notice
can be issued as long as the 45
day period does not run out
before the restriction ends.
Example:
The taxpayer offers to pay the tax in installments. Because of the pending installment agreement, there is generally a restriction on levy. See IRM 5.11.1.3.9. While the agreement is pending, the restriction does not have a specific ending date. Do not issue L1058.
Example:
The taxpayer's request for an installment agreement is rejected, and the independent reviewer sustains the rejection. The taxpayer then has thirty days to appeal the rejection, plus there is an additional fifteen day tolerance period. See IRM 5.14.9.4,Collection Appeals Program. If levy is the next planned action, L1058 can be issued at the same time the taxpayer is notified of the rejection, and the two 45 days periods will run concurrently.
Example:
The taxpayer's request for an installment agreement is rejected, and the independent reviewer sustains the rejection. If L1058 is not issued when the taxpayer is notified of the rejection, and the rejected agreement is appealed, a new restriction arises that does not have a specific ending date. Do not issue L1058.
Example:
The taxpayer fails to meet the terms of an agreement, so the Service proposes to terminate it. There is a 90 day restriction on levies. See IRM 5.14.11, Defaulted Installment Agreements, Terminated Agreements and Appeals of: Proposed Terminations (Defaults) and Terminated Installment Agreements. When the letter is issued that proposes terminating the agreement, L1058 can not be issued, because there would still be a restriction preventing levies when the 45 day waiting period for the L1058 runs out. However, when there are no more than 45 days left on the restriction, and levy is the next planned action, L1058 can be issued, as long as the taxpayer has not appealed the defaulted agreement.
-
Because taxpayers only have the
right to one Collection Due
Process Hearing for each
liability, avoid listing
liabilities on L1058 that have
already been included in such a
notice. Sending more than one
notice for a liability may give
taxpayers the impression they
can have another Due Process
appeal for that liability.
Reminder:
None of the campus IDRS notices are notices of a right to a hearing.
Reminder:
If the L1058 is mailed, it must be sent by certified or registered mail WITH A RETURN RECEIPT.
-
When the L1058 is mailed, update
IDRS with Transaction Code (TC)
971, Action Code (AC) 069 using
the ICS FINAL NOTICE DELIVERY
METHOD option. This will update
the ICS FINAL NOTICE DATE and
upload the transaction to IDRS
for each module included on the
notice. Then, when the results
of the delivery are known, use
the appropriate ICS option under
FINAL NOTICE DELIVERY METHOD or
METHOD RECEIPT RESPONSE to
upload AC 066, 067, or 068, as
shown in IRM 5.11.1.2.2.1. For
modules that are not in status
26 or when the TC 971, AC 069
should be input for a date that
is more than thirty days before
the current date, prepare Form
4844, Request for Terminal
Action, for manual terminal
input to IDRS. Ask the terminal
operator to input the date the
action took place, rather than
the date of the input.
Example:
The L1058 is mailed on March 10. The TC 971, AC 069 is input on March 12. The date of the TC is March 10.
- If the L1058 is given in person instead of being mailed, input TC 971, AC 069 and TC 971, AC 066 on the same date.
- If the notice is left at the taxpayer's home or business address instead of being mailed, input TC 971, AC 069, and TC 971, AC 067 on the same date.
Note:
Using the AC 067 in this case does not indicate delivery was refused. Inputting it the same date as the AC 069 is merely a way to show how the notice was delivered. Refused delivery is distinguished from this by the AC 067 being at a later date than the AC 069.
Note:
If the return receipt comes back unsigned, but the envelope is not attached, use Action Code 066. If there is a postmark date on the receipt, use that as the date of the transaction. If there is no postmark date, use the date that the return receipt is received.
Note:
In the past, if an IDRS 504 notice (status 58) had never been issued for a module, TC 971 Action Code 35 was input to increase the failure to pay rate to 1% after L1058 was issued. Action Code 069 now causes this change. If the higher rate has not already gone into effect because of a 504 notice, Action Code 35 is not necessary.
5.11.1.2.2.3 (07-26-2002)
Issuing Notice of Intent to
Levy/Notice of a Right to a
Hearing for Joint IMF Bal
Due account
-
If
there are Bal Dues for jointly
filed income tax returns,
prepare two copies of L1058.
- If they are not delivered in person or left at the taxpayers' home or business, mail them in separate envelopes to the taxpayers. Address one envelope to the primary taxpayer and one to the secondary, although both taxpayers' names will be on each of the notices. Do this regardless of whether the taxpayers live at the same address or different addresses. Do not use a window envelope. If there are changing name lines, be careful that taxpayers are not sent a notice for taxes they do not owe.
-
If the notices are going
to different addresses,
do not reveal one
person's address to the
other.
Example:
William and Barbara White owe tax for a joint income tax return. They now have different addresses. One L1058 is printed with both names on it and William’s address. This letter is put in a non-window envelope with only William’s name and his address on it. A copy of the letter is printed for Barbara. Both names are also printed on her copy, but Barbara’s address is used on it. Her copy of the notice is put in a non-window envelope with only Barbara’s name and her address on it.
- Before sending the L1058 to joint taxpayers living at different addresses, try to contact both of them, so the letter is not a surprise to either of them. See IRM 5.11.1.2.2.2(3). If one of the taxpayers is living in a different jurisdiction, try to get a telephone number to call this person before sending the L1058s. If a number can not be found or the attempted call fails, the letters can still be sent.
Example:
John and Mary Doe owe tax for their 2000 joint income tax return. John Doe also owes tax for his single return for 1999. John must be sent a notice for both years, but only send Mary a notice for 2000.
-
Before sending the L1058 to the
secondary taxpayer, check master
file on-line to find out if this
person has filed a return with a
different address since the
joint return(s) that generated
the Bal Dues. This step is not
necessary when there has been
contact with the taxpayers
confirming the secondary’s
address or when the Bal Dues are
for the most recent tax year.
Example:
There are Bal Dues for Steven and Marcia Brown for their joint income tax return for 2000. The revenue officer has not been able to contact the taxpayers but has found a levy source, so two L1058s are going to be sent. Before sending them, the revenue officer uses master file on line to check Marcia Brown’s social security number and finds that she has filed a more recent joint return with her second husband. The L1058 mailed to Marcia needs to be mailed to the address on her most recent return rather than the same address where Steven Brown’s L1058 will be mailed.
-
If
levy on one of the taxpayers’
property is prohibited, do not
send a separate notice to that
person. Instead, prepare a
notice with both taxpayers’
names on it, and mail it in an
envelope addressed to the
taxpayer whose property will be
levied as the next, planned
action. When the condition that
prohibits levy no longer exists,
and a levy is the next planned
action to collect from the
person whose property previously
could not be levied, send an
L1058 to that person. Also, see
IRM 5.11.2.1.2(4).
Example:
John and Mary Doe owe tax for a joint return. They are separated, and Mary is making payments on an installment agreement for the joint liability. John is not a party to the installment agreement. The revenue officer identifies the bank where John has an account and plans to send a notice of levy to the bank. Before the bank account can be levied, John must be sent an L1058, if one has not already been sent for the liabilities that will be included in the notice of levy. The notice will have both names on it, but it will only be mailed to John. Mailing an L1058 to Mary would be improper, because her installment agreement prevents levy on her property. Later, Mary defaults on her agreement, and she has the right to appeal the default. When her property is going to be levied she must first be sent an L1058 giving her the right to a due process hearing. During the waiting period for her L1058 and during her appeals, collection can continue against John.
Example:
Joseph and Marcia Smith owe tax for a joint return. Nothing prohibits levy on their property. A levy source is found for Joseph but not Marcia. As long as a levy is about to be served as the next planned action, and there is no restriction on being able to levy the property of both taxpayers, separate L1058s will be sent to both of them.
-
Input the TC 971 and ACs as
explained in IRM
5.11.1.2.2.2(6). However, when
separate notices are sent for
joint assessments, include the
secondary taxpayer's social
security number as, "X-Ref
X07-01-2004, " in the "Remarks"
on the posting document for
inputting the record of that
person's notice. This will
distinguish the primary and
secondary taxpayers' ACs.
Example:
John and Mary Doe's notices for their joint 2000 income tax return are both mailed on 1–29–2002. John's return receipt comes back signed, but Mary's is returned undelivered. There will be two TC 971s with AC 069 on 1–29–2002. One will have Mary's X-Ref SSN. The other will have no X-Ref SSN. There will also be a TC 971 AC 066 with no X-Ref SSN for John's notice and a TC 971 AC 068 with Mary's X-Ref SSN for Mary's notice.
-
When ACS issues an LT11, it will
only issue one notice for joint
IMF assessments, unless the
taxpayers are known to be living
at different addresses. Because
of the volume and batch
processing of these computer
printed notices, ACS will not
normally issue separate notices
for joint assessments. The
single ACS notice is,
nevertheless, notice to both
taxpayers. Additionally,
separate notices do not have to
be sent when CFf is collecting
the same liabilities for which
ACS already issued its Notice of
Intent to Levy/Notice of a Right
to a Hearing.
- While working the Bal Dues in CFf, the revenue officer may discover that the taxpayers were separated, and one of them was not living at the last known address when the LT11 was sent. As long as that was the person’s last known address when the notice was sent, it was a legally valid notice of a right to a hearing. See IRM 5.11.1.2.1.1. Nevertheless, it may be inequitable to take this person’s property without notice. Give Letter 3174(P) to the taxpayer who was not living at the address before serving additional notices of levy on that person’s property, and release notices of levy that have been served on that person’s property. See Exhibit IRM 5.11.1–3.
-
ACS may have sent LT11
to the address shown on
master file for the last
joint return that the
taxpayers filed.
However, if they had
separated, they were
living at different
addresses when the LT11
was sent, and the
secondary taxpayer had
already reported a new
address, that becomes
that person’s last known
address. In this case,
an L1058 needs to be
sent to the secondary
taxpayer before that
person’s property can be
levied.
Example:
ACS had Bal Dues on James and Sandra Jones. An LT11 was sent to the address shown on master file. The revenue officer then receives the Bal Dues in transfer and finds out that Sandra Smith (formerly Jones) was not living at that address when the LT11 was sent. She is filing jointly with her new husband, and they had already filed a return showing their address when the LT11 was sent.
-
By
the same token, the revenue
officer may send two L1058s for
a joint Bal Due and discover
later that one of the taxpayers
was living at a different
address when the letters were
sent. Although the notice is
legally valid if it is sent to
the last known address, it has
been administratively determined
that Letter 3174(P) will be sent
to this taxpayer before serving
additional notices of levy on
that person’s property, and
notices of levy that have
already been served on that
person’s property will be
released.
Note:
Because of procedures in (2), above, this should only be an issue if the secondary taxpayer has not reported a new address.
5.11.1.2.2.4 (06-29-2001)
Issuing Notice of Intent to
Levy/Notice of a Right to a
Hearing for Deceased
Taxpayers
-
Generally, if a taxpayer has
died, a proof of claim may be
filed to collect delinquent tax
from the estate. In some
circumstances a notice of levy
may be called for.
Example:
The estate or certain assets may not be going through probate.
Example:
For a joint return, the assets of the surviving spouse may be levied to collect the delinquent tax.
- Technical Services and/or Associate Area Counsel may need to be consulted to determine whether a notice of levy can be served.
- If a notice of levy will be served, L1058 must be sent, even if the TP has died.
-
For
single liabilities
IF THEN No estate administrator or executor is known Send the L1058 to: John Smith (Dec'd)
John Smith's Last Known
AddressIF THEN An estate administrator or executor is known Send the L1058 to: John Smith (Dec'd)
Charles Jones, Administrator (or Executor)
Charles Jones' Last Known AddressNote:
Consider sending a copy to the address of the fiduciary and/or attorney for the estate.
-
For
joint IMF liabilities
IF THEN No estate administrator or executor is known Send two L1058s.
Address both to:James Doe (Dec'd) and Mary Doe Use James' last known address on his L1058 and Mary's last known address on hers. Put James' L1058 in a non-window envelope addressed only to him at his last known address. Put Mary's L1058 in a non-window envelope addressed only to her at her last known address. IF THEN An estate administrator or executor is known Send two L1058s.
Address one to:James Doe (Dec'd) and Mary Doe
William Green, Administrator (or Executor)
William Green's Last Known AddressPut this in a non-window envelope addressed the same way as the letter, except delete Mary's name. Address the other L1058 to: James Doe (Dec'd) and Mary Doe
Mary's Last Known AddressPut this in a non-window envelope addressed the same way as the letter, except delete James' name. Note:
Consider sending a copy to the address of the fiduciary and/or attorney for the estate.
5.11.1.2.2.5 (06-29-2001)
Issuing Notice of Intent to
Levy/Notice Of a Right to a
Hearing to Partnerships
- When sending L1058 to a partnership, send it to the last known address of the partnership. See IRM 5.11.1.2.1.1.
-
Do
not send additional L1058s to
the partners at their addresses.
Exception:
If the partnership is no longer operating, or there is another reason to know that it is not at the last known address, L1058 must still be sent to this address. Also send a copy of the letter and the enclosures to any general partners whose addresses are known, e.g., partners who provide their addresses when contacted about the taxes, and partners whose addresses are found through normal skip tracing when a partnership is not at its last known address. Use regular mail for the copies sent to the partners.
5.11.1.2.2.6 (07-01-2004)
Timeliness of Notice
- The purpose of the Notice of Intent to Levy described in IRM 5.11.1.2.1(3) is to warn the taxpayer that continued failure to respond can be expected to result in imminent enforcement. When a long time passes after the notice is issued and there has not been enforcement, the notice loses its effectiveness as a warning.
-
If
a notice of intent to levy is
over 180 days old, it is legally
valid to support subsequent
collection action by levy.
However, it has been
administratively determined that
the taxpayer will get a new
warning of enforcement action
before a notice of levy is
issued.
- This warning must be documented in the case file. It may be given orally (in person or by phone) by telling the taxpayer that there is a deadline (not necessarily thirty days) after which there will be enforcement. On the other hand, it may be given in writing, if the taxpayer can not be contacted. See Exhibit 5.11.1-3.
- This "timeliness" warning is in addition to the notices described in IRM 5.11.1.2.1, Required Notices, that are required by law and must have been sent at some point. An oral warning to pay is not adequate to allow a notice of levy to be served if there has never been a thirty day Notice of Intent to Levy / Notice of the Right to a Hearing.
-
If the most recent
warning of enforcement
is over 180 days old,
give the taxpayer a new
one before taking
enforcement. This means
that over the life of
the liability, there may
be a need to give this
warning more than once.
Example:
An L1058 is sent to a taxpayer, followed by a notice of levy. After 180 days pass with no additional enforcement, a new warning needs to be given before another notice of levy or a seizure, unless one of the exceptions in a.) exists. Then, a new 180 day count begins.
Note:
Do not issue another L1058 to give the taxpayer a timely warning. The taxpayer gets the opportunity only once for a pre-levy hearing described in that letter for each liability. Sending another L1058 will give the incorrect impression that the taxpayer can do this again.
Exception:
Collection is at risk. The compliance territory manager or an Insolvency/Technical Services manager (second level) must approve the levy. The taxpayer can discuss the levy with the group manager, the Taxpayer Advocate, and the Appeals Officer.
Exception:
Computer matching programs in which files of liabilities are matched against files of assets/income resulting in immediate payment, e.g., levy on state tax refunds.
Exception:
Enforcement has taken place within the last 180 days. Enforcement only includes seizures and notices of levy, so the taxpayer should realize there has been enforcement. For example, if a notice of levy is sent to an employer, and it is returned because the taxpayer no longer works there, this notice of levy does not start the count for a new 180 day period. The taxpayer would have no way to realize there had been an attempt to enforce. On the other hand, if a levy were sent to a bank and a copy was sent to the taxpayer, even if there were no proceeds, the taxpayer would have been notified of the levy.
Exception:
The taxpayer exercises their Collection Due Process (CDP) rights. The Notice of Determination in CDP constitutes a warning of imminent enforcement if the levy is supported.
-
The
required notices must have been
sent for every module that is
included in a notice of levy.
The taxpayer has had timely
notice as long as there has been
recent warning of enforcement
for at least one module included
in a notice of levy within the
last 180 days. In other words,
the requirement for the notices
in IRM 5.11.1.2.1 must be met
for each module included in a
notice of levy, but the
timeliness of warning is for the
entity rather than each module.
Example:
The required notices have been sent for all modules included in the notice of levy. They are over 180 days old, so the TP is given a new oral warning of enforcement. After the deadline passes, a new module is received for which a notice of intent to levy and notice of the right to a hearing had been sent more than thirty days ago, so the legal requirement for this module has been met. A new oral warning is not necessary, even if the notice of intent to levy and notice of the right to a hearing for this new module had been sent more than 180 days earlier, because the TP has been warned of enforcement within the last 180 days.
- If the taxpayer can not be located, the required notices still must have been sent to the last known address. However, additional notices for these liabilities do not have to be sent to the last known address just to meet the timeliness requirement.
5.11.1.2.2.7 (07-26-2002)
Rescinding a Notice of
Intent to Levy/Notice of a
Right to a Hearing
- Sometimes L1058 is issued, and it should not have been. This may mean that it should be rescinded.
-
If
the letter should not have been
issued, and less than 45 days
have passed , send Letter 3212,
Recision of Notice of Intent to
Levy and Notice of Your Right to
a Hearing. This letter is
available as an ICS macro.
- Letter 3212 states that L1058 is rescinded. If a due process hearing has already been requested, the taxpayer can have the hearing. If the taxpayer decides to go ahead with the hearing, L1058 has not been rescinded.
- At the taxpayer's option, the request for a hearing can be withdrawn in response to Letter 3212. Form 12227, Withdrawal of Request for a Collection Due Process Hearing, (sent with the letter) is used for the withdrawal. This way, L1058 is rescinded, and the taxpayer reserves the right to have a due process hearing when levy is imminent.
- If the L1058 is rescinded, input TC 972, Action Code 066–069, to reverse each TC 971 that has already been input for the rescinded letter. The input date for each TC 972 must be the same as the date for the TC 971 it is reversing.
-
After 45 days have passed since
the L1058 was issued, it does
not have to be rescinded. At
this point, the taxpayer has had
the right to ask for a hearing.
Example:
The reason for rescinding L1058 may be found years later, and in the interim, the taxpayer may have already taken advantage of the right to a due process hearing. Withdrawing L1058, at this point, would entitle the taxpayer to a second hearing, when only one is allowed by law.
5.11.1.2.2.8 (07-26-2002)
Verification of Notice of
Intent to Levy/Notice of a
Right to a Hearing
- A record will be made in the ICS history showing when and how the Notice of Intent to Levy/Notice of a Right to a Hearing is given to the taxpayer. This will be automatically generated by ICS when the input described in IRM 5.11.1.2.2.2(6) is done.
- If the Notice is mailed, the Postal Service's rubber stamp imprint on a Certified Mail Receipt (Postal Service Form PS 3800) or a Certified Mail Book (Form PS 3877) is desirable to verify the mailing. However, getting the form stamped may not be practical, e.g., the nearest Post Office may be many miles from a remote post of duty. Even if the postal stamp is not obtained, keep the unstamped Certified Mail Receipt in the case file.
- If the Notice is delivered, the return receipt (PS Form 3811) should come back. If the notice is not delivered, the envelope with the attached return receipt should come back. Keep the return receipt or the undelivered envelope (with the attached return receipt) in the case file. These can serve as proof the notice was mailed. Sometimes neither the return receipt nor the undelivered envelope comes back. In this case, the number on the Certified Mail Receipt (even if it is unstamped) will allow verification through the Postal Service's web site (www.usps.gov) for six months.
5.11.1.2.2.9 (07-26-2002)
Waiver of Notice of Intent
to Levy/Notice of a Right to
a Hearing
-
Occasionally, a taxpayer may
want the Service to issue a
notice of levy quickly.
Example:
The taxpayer is expecting another creditor to attach assets. The other creditor's debt can be discharged in bankruptcy, but the delinquent taxes cannot. The taxpayer may want the assets levied before the other creditor can attach them and then file bankruptcy to discharge the other debt.
- Normally, a levy cannot be issued until an L1058 has been issued, and the waiting period after the Notice has passed. However, in this situation, the taxpayer may have an incentive to waive the waiting period and the right to a hearing, so the notice of levy can be issued promptly.
- Waiving this right must be knowing and voluntary, or it is not a valid waiver. The waiver must be in writing.
- First, give the taxpayer an L1058, including all the enclosures so they have an opportunity to understand the rights they are waiving. Discuss those rights with the taxpayer and document the case history accordingly. Then, have the taxpayer sign Form 13207, Waiver of Right to Receive a Collection Due Process Hearing Under Internal Revenue Code Section 6330. This form is available as an ICS macro.
- If this form does not fit the situation, discuss the need for some alternative language with Technical Services, which may consult with Associate Area Counsel. The right to Collection Due Process must be waived in its entirety. Do not accept a proposed waiver that is restricted to allowing levy only on a specific asset or class of assets.
- Input the appropriate codes shown in IRM 5.11.1.2.2.2(6).
5.11.1.2.2.10 (07-26-2002)
Issuing Notice of Intent to
Levy for Child Support
Obligation Bal Dues
- IRC 6305 says that federal courts have no jurisdiction to restrain or review the assessment and collection of Child Support Obligation (CSO) Bal Dues. It also says that the assessment and collection are not, ... "subject to review by the Secretary in any proceeding...."
- This means that Collection Due Process does not apply to these liabilities, so no notice of a right to a hearing (L1058) will be issued when CSO Bal Dues are being collected. Similarly, the taxpayer can neither request review under the Collection Appeals Program nor by the Taxpayer Advocate.
-
Before a notice of levy can be
issued to collect a CSO
liability, there must be a,
- Notice and demand, and
- Notice of intent to levy
- The notice and demand is issued at the campus, when the liability is assessed.
- Use Letter 3524, Final Notice - Notice of Intent to Levy, Please Respond Immediately, instead of L1058. This is the notice of intent to levy for CSO Bal Dues. It is available as an ICS macro. This must be given to the taxpayer, as described in IRM 5.11.1.2.1(3). If it is mailed, no return receipt is required.
- If the person who owes child support also owes tax, give L1058 to the taxpayer for delinquent tax modules, but do not include the child support on this letter. Letters 1058 and 3524 can be mailed in the same envelope, but if that is done, a return receipt is required.
-
Because L1058 has not been
issued for the CSO Bal Dues, ICS
will not allow the revenue
officer to issue a notice of
levy. Instead, this must be done
by the group manager.
Note:
Also see IRM 5.11.1.3.2.
5.11.1.2.3 (06-29-2001)
Delegation Orders
- See Delegation Order No. 191 (Rev 3).
5.11.1.2.4 (07-01-2004)
Managerial Approval
- Certain notices of levy must be approved by managers. See Delegation Order No. 191 (Rev 3).
-
When submitting a notice of levy for
approval, include the following
information:
- A summary of any information the taxpayer has provided that may affect the decision to levy, e.g., claims that the assessment is wrong
- If the taxpayer has submitted such information, provide an explanation you have reviewed the information, and why the notice of levy should still be served
- Verification that the amount is still owed, e.g., IDRS has confirmed the amount is still unpaid
- An explanation that the notice of levy is appropriate in consideration of the amount owed and any circumstances that are known about the taxpayer and the liability
- Other collection alternatives considered or rejected
-
Consider the following when
determining if the levy is
appropriate,
- The taxpayer's responsiveness to attempts at contact and collection
- Anything that is known about the taxpayer's financial condition
- The taxpayer's history of delinquency
- The taxpayer's effort to pay the tax
- Whether current taxes are being paid
- This information must be in writing, but the format can be at local management discretion.
- The
approval must also be in writing,
but the method can be at local
management discretion. Either the
manager must write the approval in
the ICS history, or a copy of the
manager's written approval must be
kept in the case file.
Example:
The revenue officer and manager are at the same location, so the notice of levy is turned in to the group manager who signs the levy. A copy of the notice of levy, with the manager's signature on it, is put in the case file.
Example:
The revenue officer and manager are at the same location, so the revenue officer signs the notice of levy and turns it in to the manager who initials it to show it has been approved. A copy of the notice of levy, with the manager's initials on it, is put in the case file.
Example:
The revenue officer and manager are at different locations. The revenue officer writes an explanation of why the notice of levy should be approved, includes an "Approved" line on it, and faxes this to the manager. The manager signs on the "Approved" line, and faxes this back to the revenue officer who puts this in the case file to document the approval, and then the revenue officer signs the notice of levy.
Example:
The revenue officer and manager are at different locations. The revenue officer faxes a copy of the first page of the notice of levy to the manager who signs it and faxes it back to the revenue officer. The revenue officer places this in the case file to document the approval, and then the revenue officer signs the notice of levy.
Example:
The revenue officer uses the Integrated Collection System (ICS) to send an E-mail message to the manager asking for approval of the notice of levy. The manager accesses the case and records the approval in the ICS history. The manager’s access to the case generates a notification to the revenue officer who then accesses the case, sees that the levy is approved, prints the notice of levy, and signs it.
- A notice of levy that requires the approval of the SB/SE Compliance Area Director, the Director of Compliance Services, or the Director of Specialty Tax and Technical Services must include a memo explaining the information in (2). If all levels approve the notice of levy, but the Director rejects it, the rejection must be in writing and explain the reason(s). Maintain copies of all approvals and rejections in the case file.
- If a courtesy levy is involved, indicate the required manager has approved of the notice of levy.
5.11.1.2.5 (12-31-2001)
Approval of Alter-Ego, Nominee,
and Transferee Notices of Levy
- Notices of levy that name alter-egos, nominees, and transferees often involve complex issues and are likely to result in litigation.
- See IRM 5.12.1.18.1, Transferee and Nominee Cases, and 5.12.1.18.2, " Alter Ego" Doctrine - Corporations for guidance about whether the facts support such a determination. Also, see IRM 5.1.14.2, Transferee Liability and Fraudulent Conveyances, for additional guidance about transferee liability.
- The compliance territory manager or Insolvency /Technical Services manager (second level) must approve the notice of levy. Associate Area Counsel must also approve it. See IRM 5.11.1.2.4.
- Do
not issue notices of levy listing
alter-egos, nominees, or transferees
without first getting legal review,
advice,
written direction and approval
from Associate Area Counsel as to
the,
- Issuance of the levy
- Need for a supplemental assessment
- Need for a new notice and demand
- Need for a new Notice of Intent to Levy and Notice of the Right to a Hearing
- Language to be included on pre-levy notices and the notice of levy
5.11.1.3
(06-29-2001)
Restrictions on Levy
- This subsection contains restrictions on levy. See IRM 5.1.9.3.3, Levy Action during the Period of the Collection Due Process Hearing,regarding restrictions on levy during Due Process Hearings.
5.11.1.3.1 (07-01-2004)
Property Exempt from Levy
- IRC
6334 describes property that is
exempt from levy. The exempt income
sources are:
- Unemployment benefits
- Certain annuity and pension payments, including payments under the Railroad Retirement Act, Railroad Unemployment Insurance Act, Special Pensions for Medal of Honor Winners, and Retired Serviceman's Family Protection Plan and Survivor Benefit Plan
- Workers Compensation
- Judgment for support of minor children, if the judgment is before the date of the levy
- Certain military service connected disability payments
- Certain public assistance payments
- Assistance under the Job Training Partnership Act
Note:
IRC 6331(h) allows for levy on 15% of certain previously exempt government payments. The intent of this provision was to make a computer match possible between tax liabilities and records of payments from the government's disbursing agencies, so a flat percentage of the payments could be attached. The computer matches are being arranged by Headquarters. Continue to refrain from issuing Forms 668A(C)(DO) and 668W(C)(DO) on the payments listed above. See IRM 5.11.7.2, Federal Payment Levy Program,for additional information about levies issued under IRC 6331(h).
- In addition to these exempt sources of income, a portion of a taxpayer's wages, salary, and other income is exempt from levy under IRC 6334. See IRM 5.11.5.4 for additional information about this exemption.
- See IRC 6334 and IRM 5.17, Legal Reference Guide,for additional information about property exempt from levy.
- No
other property is exempt from levy.
No state or local law can exempt
property from levy to collect
federal tax.
Example:
Even if property is exempt under a state homestead exemption law, it is not exempt from federal levy.
5.11.1.3.2 (07-26-2002)
Property Exempt from Levies Used
to Collect Child Support Bal
Dues
-
When child support Bal Dues are
being collected, three of the things
in IRM 5.11.1.3.1(1) are not exempt
from levy. They are,
- Unemployment benefits
- Certain annuity and pension payments
- Amount of income needed to pay a judgment for the support of minor children. However, income withheld for a judgment for child support is not levied, if the judgment is dated before the levy.
- Use Letter 1696(P) to explain the exemptions that do not apply for child support levies. See Exhibit 5.11.1–2
- Also, see IRM 5.11.1.2.2.10.
5.11.1.3.3 (07-01-2004)
Property in the Hands of the
Courts
- IRC 6332 (a) provides that property subject to attachment or execution under any judicial process is not subject to levy. Also, the IRS generally does not levy on assets in the custody or control of a court, because that would interfere with the court proceeding.
-
Generally, if the taxpayer is in
bankruptcy or state insolvency
proceedings, do not levy assets in
the hands of the court to collect
the tax that this person owes.
However, a levy can be served to
attach assets the court may
distribute to another person who is
the taxpayer's creditor.
Caution:
Fred Green is a delinquent taxpayer who files bankruptcy. Fred's assets are in the hands of the court, so it can determine which of Fred's creditors will be paid and how much. While this is underway, generally, a levy will not be served on the court in an attempt to take any of these assets to collect Fred's tax. However, Joe Blue is one of Fred's creditors, and Joe also owes delinquent tax. A levy can be served on the trustee to attach Joe's fixed and determinable right to assets that may be distributed to him.
Caution:
Do not levy without getting advice from the Insolvency when there is a current bankruptcy condition or the taxpayer states taxes were discharged in a prior bankruptcy. Bankruptcy laws allow debtors to sue the Service for damages and attorney fees when the automatic stay or discharge injunction is violated.
Caution:
Contact Technical Services regarding levy on property that is or may be in the control of a probate court.
- Property may have been seized before the taxpayer began court proceedings. In non-bankruptcy cases, this may affect whether the property can be sold. Contact Technical Services for advice. In bankruptcy cases, property that has not been sold may have to be turned over to the bankruptcy estate. Contact Insolvency in your territory for advice.
-
When property is being used as
evidence in a criminal court, it can
be levied.
- Serve the levy on the official responsible for holding and releasing the property, e.g., police property clerk.
- Tell this person not to surrender the property until the court releases it.
5.11.1.3.3.1 (06-29-2001)
Cash Deposited as Security
for Bail
- Levy cash deposited as security for bail only if collection is at risk. The compliance territory manager or a second level Insolvency/Technical Services manager must approve the levy.
- If a levy is served, tell the Court Clerk to respond when the taxpayer no longer requires a bond.
- If collection is not at risk, do not levy. Instead, ask the Court Clerk to notify IRS when the bond is no longer required. Then decide whether to levy the bond before it is returned to the taxpayer.
5.11.1.3.3.2 (06-29-2001)
Forfeited Property
-
Sometimes, property used in a
crime or acquired through crime
is forfeited.
Example:
Criminal Investigation may seize money used in violating the Internal Revenue Code. This may be subject to judicial forfeiture.
- If property can be forfeited in a federal proceeding, it will not be levied. However, Criminal Investigation may alert Collection to levy property if the court declares it is not forfeited. In a state or local forfeiture, contact Associate Area Counsel to determine whether the federal tax lien encumbers the property under IRC 6323 (i)(3), which would allow the IRS to levy the property.
5.11.1.3.4 (06-29-2001)
Property Outside the United
States
- Serve notices of levy only within the United States, including the District of Columbia and U.S. possessions and territories. All of these are referred to below simply as the U.S.
- If the taxpayer is outside the U.S., but there are assets here, they can be levied.
- Never serve a notice of levy outside the U.S. Also, never serve a levy at another country's embassies, consulates, or missions, even if they are within U.S. borders. See IRM 5.11.6.9, United Nations (UN) Employees' Income,for levies served at the United Nations.
- A foreign bank may have branches in the U.S. A notice of levy can be served at U.S. branches and reach funds held there. It might also reach funds in branches outside the U.S. See 26 CFR 301.6332. Contact Technical Services and Associate Area Counsel for advice.
- Several countries, including Canada, now have reciprocal tax treaties with the United States. See IRM 5.1.8.7.9, Mutual Collection Assistance Requests (MCARs).
5.11.1.3.5 (06-29-2001)
Appearance Date of Summons
- Do not levy on a day the taxpayer must appear for a summons that was issued to secure information to collect delinquent tax. For example, when a taxpayer is summonsed to provide information to complete a Collection Information Statement. See IRC 6331(g).
- Even if a summons is issued for another reason, do not levy on the appearance date. For example, there may be Bal Dues and Del Rets on the same taxpayer. The summons could be issued for the unfiled return.
- You are not expected to contact other divisions to ask if they have summoned the taxpayer.
- If
collection is in jeopardy, a levy
can be issued on the summons
appearance date. Collection is only
in jeopardy if one of the conditions
allowing a jeopardy assessment
exists. See Policy Statement 4-29
(formerly P–4–88).
- The compliance territory manager or a second level Insolvency/Technical Services manager must approve the jeopardy levy.
- If the notices described in IRM 5.11.1.2.1 have been sent, and the time periods for them have passed, the appeal process in IRM 5.11.3.6 does notapply. If possible, consult with Technical Services and Counsel before the levy is served. The taxpayer can discuss the levy with the group manager, the Taxpayer Advocate, or the Collection Appeals Officer.
- If the notice requirements have not been satisfied, see IRM 5.11.3, Jeopardy Levy Without Jeopardy Assessment,for required procedures and approval level.
5.11.1.3.6 (01-19-1999)
Banks under FDIC (Formerly RTC)
Control
- The Service made an agreement with the Resolution Trust Corporation (RTC) about amounts owed by banks under RTC control. A notice of levy will not be used to collect these amounts.
- RTC has been abolished, and the Federal Deposit Insurance Corporation (FDIC) took over RTC's functions. The RTC agreement continues to apply to banks under FDIC's control.
5.11.1.3.7 (07-26-2002)
Repeated Levies on the Same
Source
- If
repeated levies on the same source
are necessary to collect a
liability, secure and document
managerial approval.
- Manager's approval is required only if the same source has been levied before to collect the same liability. The age of the prior levy does not affect whether approval is needed, although it may affect how frequently the source can be levied without causing a hardship on the taxpayer.
- Review the case file/ICS history to determine if the source has been levied before to collect the same liability. If an ACS transcript has been received with the case, review the transcript, too, to see if the source was already levied to collect the tax.
- For cases that have been worked, closed, and then reactivated, there will not be an available file to review. For example, if the case is a reactivated CNC, there generally is no way to know whether a source was levied before to collect the same liability. There is no need to attempt to locate the earlier file in the Federal Records Center, because they are not retired in a manner that makes any given file retrievable. If the case was previously worked in ICS, the sources previously levied through ICS might be retrievable from the archives, depending on how long ago it was reported CNC. If it is available through the archives, check that.
-
If there are any new modules
that were not included in
the earlier levy to the same
source, manager's approval
is not required, because the
levy is being used to
collect a new liability.
Example:
A notice of levy was issued to collect taxes owed for Form 941 for all four quarters of 2000. Later, another notice of levy is going to be issued to the same levy source. The four quarters of 2000 are still not fully paid, but there are now also Bal Dues for the first two quarters of 2001. A notice of levy to collect the six Bal Dues does not require manager's approval, unless it is required for a reason other than the fact that it is going to the same levy source.
- A continuous wage levy or a levy that otherwise reaches a series of future payments, e.g., retirement payments, is not a repeated levy requiring manager's approval.
- See Policy Statement 5-5 (formerly P–5–28).
5.11.1.3.8 (01-19-1999)
Government Training Allowances
- People attending government training programs develop skills so they can get jobs. Except for payments under the Job Training and Partnership Act, these payments are not exempt from levy. However, levying them would defeat the purpose of the programs, so these payments will not be levied.
- See Policy Statement 5-7 (formerly P–5–33).
5.11.1.3.9 (06-29-2001)
Pending & Active Installment
Agreements
- If
the taxpayer makes an offer to pay a
liability through installments, no
levies can be served while the
proposal is pending.
Note:
An unreversed transaction code (TC) 971, Action Code (AC) 043 means there is a pending installment agreement. This can be reversed by a TC 972, AC 043. If the pending agreement becomes an active agreement, there will also be a TC 971, AC 063, in which case both the pending and active installment agreement coding are reversed by a TC 971, AC 163.
Exception:
A levy can be served if the taxpayer waives the restriction in writing.
Exception:
A levy can be served if collection is in jeopardy. Collection is only in jeopardy if one of the conditions allowing a jeopardy assessment exists. See Policy Statement 4-28 (formerly P–4–88).
- The compliance territory manager or a second level Insolvency/Technical Services manager must approve the jeopardy levy.
- If this happens while a rejected installment agreement is being appealed, notify Appeals of the jeopardy determination.
- If the required notices have been sent, and the time periods for them have passed, the appeal process in IRM 5.11.3.6, Appealing the Jeopardy Levy,does not apply. The taxpayer can still discuss the levy with the group manager, the Taxpayer Advocate, or the Appeals Officer. If possible, consult with Technical Services and/or Counsel before the levy is served.
- If the notice requirements in IRM 5.11.1.2.1 have not been satisfied, see IRM 5.11.3, Jeopardy Levy Without Jeopardy Assessment,for required procedures and approval level.
- In
addition to the period that an offer
of an installment agreement is
pending, no levy can be served,
- For thirty days after an offer of an installment agreement is rejected
- While a rejection of a proposed agreement is being appealed
- While an agreement is in effect
- For thirty days after notifying a taxpayer that an agreement has been defaulted and will be terminated, i.e., CP523 or Letter 2975
- For an additional thirty days after an agreement is terminated
- While termination (or proposed termination) of an agreement is being appealed.
Caution:
Allow an additional fifteen days after each of these thirty day periods, as discussed in IRM 5.11.1.2.1(5).
Note:
Status 60 or an unreversed TC 971, AC 063 means there is an active installment agreement. This is reversed by TC 971, AC 163.
Exception:
The same as in (1), above.
- By contrast, if a levy was issued BEFORE an installment agreement is made, it must be released, unless the agreement provides otherwise. See IRC 6343(a)(1)(C). If a levy was served and then the taxpayer offers to pay in installments, the levy does not have to be released while negotiations for the installment agreement are pending.
- If
an offer of an installment agreement
is made merely to delay collection,
levies can be served to collect the
tax (Treas. Reg. 301.6331-4(a)(4)).
- The levy must be approved by the compliance territory manager or a second level Insolvency/Technical Services manager.
- If the notices described in IRM 5.11.1.2.1 have been sent, and the time periods after them have passed, jeopardy is not required, and the appeal process in IRM 5.11.3.6 does not apply. The taxpayer can discuss the levy with the group manager, the Taxpayer Advocate, or Appeals.
- If the notice requirements in IRM 5.11.1.2.1 have not been satisfied, the jeopardy levy procedures in 5.11.3, Jeopardy Levy Without a Jeopardy Assessmentmust be followed.
Caution:
The determination that the offer is merely to delay collection must be apparent to any impartial observer, i.e., there is clearly no reality to the offer.
Example:
The taxpayer offers to make a periodic, token payment such as $1 a month.
Example:
A taxpayer makes an offer to make installment payments. The agreement is rejected. The taxpayer then offers to increase the proposed agreement by a token amount, such as $1.
5.11.1.3.10 (07-01-2004)
Refund Litigation
-
Responsibility for refund litigation
depends on who is suing and the type
of tax involved.
- Technical Services is responsible for refund litigation if a suit is filed by a third party regarding a Trust Fund Recovery Penalty assessment.
- The campus refund litigation unit is responsible for all other refund litigation.
- For
tax periods that began before
January 1, 1999, if the taxpayer
files a suit for a refund of
divisible taxes, Technical Services
or the campus refund litigation unit
determines whether collection is
suspended during the suit. For
further information about refund
suits, see IRM 25.3,Litigation
and Judgments.
- Divisible taxes include employment taxes, trust fund recovery penalties, excise taxes (except chapters 41-44 taxes), and abusive tax shelter penalties.
- Unlike other taxes, the taxpayer can pay only a portion of the amount owed before filing suit for refund, so this refund litigation happens while there still is an amount owed.
- Collection does not have to be in jeopardy, as long as the pre-levy notice requirements of IRM 5.11.1.2.1 have been satisfied. Get Associate Area Counsel's approval because of their ongoing involvement in the case and keep Technical Services apprised of case developments. The compliance territory manager or a second level Insolvency/Technical Services manager must also approve the levy.
-
Generally, for tax periods beginning
after December 31, 1998, no levy can
be served to collect divisible taxes
that are included in a suit for
refund.
- This change only applies to employment taxes and trust fund recovery penalties for employment taxes.
- For trust fund recovery penalties for other taxes, continue to follow (2), above.
- If
collection is in jeopardy, levies
can be issued to collect the tax.
- If the notice requirements of IRM 5.11.1.2.1 have not been satisfied, see IRM 5.11.3, Jeopardy Levy Without Jeopardy Assessment, for required procedures and approval level of the jeopardy levy
- If the notice requirements of IRM 5.11.1.2.1 have been satisfied, the jeopardy levy must be approved by the compliance territory manager or a second level Insolvency/Technical Services manager. It must also be approved by Associate Area Counsel. Keep Technical Services apprised of case developments. The appeal process in IRM 5.11.3.6 does not apply. The taxpayer can still discuss the levy with the group manager, the Taxpayer Advocate, or the Appeals Officer.
Exception:
If the taxpayer waives the restriction on levy in writing, levies can be issued to collect the tax.
Note:
If collection is in jeopardy or the taxpayer waives the restriction on levy in writing, notify Technical Services that collection is not being withheld.
- A levy that was issued before the suit was filed does not have to be released. Contact Associate Area Counsel for advice about whether to release the notice of levy. If necessary, tell the person who received the levy to delay sending any proceeds until Counsel's advice is received. Keep Technical Services apprised of case developments.
5.11.1.3.11 (06-29-2001)
Due Process for Lien Filing
- Generally, within five business days after a Notice of Federal Tax Lien (NFTL) is filed, Letter 3172(DO), Notice of Federal Tax Lien filing and Your right to a hearing under IRC 6320, is sent to taxpayers to tell them about the NFTL and allow them a chance for a Collection Due Process appeal about the lien. See IRM 5.12.3, Appeals Process and Claims for Damage.
- If
the notice requirements in IRM
5.11.1.2.1 have been satisfied,
Letter 3172(DO) does not create a
new waiting period before a Notice
of Levy can be issued. However, once
the taxpayer appeals the lien
filing, generally, no Notices of
Levy will be issued during the
administrative or judicial appeal.
See IRM 5.1.9.3.3,
Levy Action
during the Period of the Collection
due Process Hearing for a
description of when property can be
levied during the appeal process.
Example:
On April 5, 1999, a Notice of Federal Tax lien is filed, and Letter 3172(DO) is sent to the taxpayer on April 7. The taxpayer appeals the NFTL on April 29. Until April 29, as long as the notice requirements in IRM 5.11.1.2.1 have been satisfied, a Notice of Levy can be issued to collect the amount that is owed, including the periods that are included in Letter 3172(DO).
5.11.1.3.12 (12-31-2001)
Offers in Compromise
-
Notices of levy can not be served
while an offer in compromise is
pending, within 30 days after an
offer is rejected, or while a
rejected offer is being appealed.
Ensure that the offer in compromise
has been closed before issuing the
levy.
Caution:
After the 30 days run out following rejection of the offer, allow an additional 15 days, as discussed in IRM 5.11.1.2.1(5).
Exception:
Notices of levy can be served if collection is in jeopardy. If this happens while a rejected offer is being appealed, notify Appeals of the jeopardy determination.
- The compliance territory manager or a second level Insolvency/Technical Services manager must approve the jeopardy levy.
- If the notices described in IRM 5.11.1.2.1 have been sent, and the time periods have passed, the appeal process in IRM 5.11.3.6, Appealing the Jeopardy Levy,. does not apply. The taxpayer can discuss the levy with the group manager, the Taxpayer Advocate, or the Appeals Officer. If possible, consult with Counsel before the levy served.
- If the notice requirements in IRM 5.11.1.2.1 have not been satisfied, see IRM 5.11.3, Jeopardy Levy Without Jeopardy Assessment, for required procedures and approval level.
Exception:
Notices of levy can be served if the taxpayer waives the restriction, in writing.
- See IRM 5.8.3.5, Offers Submitted Solely to Delay Collection.
- If an offer in compromise is made merely to delay collection, levies can be served to collect the tax. The provisions in IRM 5.11.1.3.9(4) also apply to such offers.
5.11.1.3.13 (07-01-2004)
Special Treasury Fund
- Members of the military and Public Health Service employees may deposit money in a Special Treasury Fund, while they are outside the U.S. and its possessions.
- Get
advice from Associate Area Counsel
before attempting to levy money in
the Special Treasury Fund. Keep
Technical Services informed in light
of the potential for litigation and
wrongful levy actions.
Note:
Refer Counsel to Subsection 1035 of Title 10 of the U.S. Code.
Exhibit 5.11.1-1
(06-29-2001)
Guide for Determining Whether
Counsel Approval and/or Jeopardy are
Required for a Notice of Levy
Exhibit 5.11.1-2
(06-29-2001)
Letter 1696(P) (Rev. 1–90)
| (Reference IRM 5.11.1.3.2) | |
| Taxpayer's Name: | |
| Address: | |
| Social Security Number: | |
| Person to Contact: | |
| Telephone Number: | |
| (Name and Address of Levy Source) | |
| (Salutation): | |
| The enclosed notice of levy is for the collection of a delinquent child support obligation as authorized by section 6305 of the Internal Revenue Code. The following exemptions from levy under Code sections 6334(a)(4), (6), and (8) listed on the back of Part (Insert 4, if Form 668W(C)(DO) is enclosed. Insert 1, if Form 668A(C)(DO) is enclosed). of the levy do not apply: | |
| 1) Unemployment benefits, | |
| 2) Certain annuity and pension payments, and | |
| 3) Judgments for support of minor children unless the funds are actually withheld because of a garnishment under the judgment. | |
| If you have any questions, please contact the person whose name and telephone number are shown above. | |
| Sincerely yours, | |
| (Place for signature) | |
| Title | |
| Enclosures: | |
| Notice of levy | |
| Envelope | |
| Letter 1696(P) (Rev. 1–90) | |
Exhibit 5.11.1-3
(06-29-2001)
Letter 3174 (P) (Rev 1–1999)
| (Reference, IRM 5.11.1.2.1.1, IRM 5.11.1.2.2.3, IRM 5.11.1.2.2.4, IRM 5.11.1.2.2.5 & IRM 5.11.1.2.2.6) | |
| Letter Number:3174(P) | |
| Letter Date: | |
| Social Security Number or Employer | |
| Identification Number: | |
| Person to Contact: | |
| Telephone Number: | |
| Taxpayer Name | |
| Address | |
| Dear (name) | |
| Although we previously sent you a notice of our intention to collect your unpaid tax through enforced collection, our records show that you still have not paid the amount you owe. Enforced collection may include placing a levy on your bank accounts, wages, receivables, commissions, etc. It could also involve seizing and selling your property, such as real estate, vehicles, or business assets. | |
| To prevent collection action, please pay the amount you owe, now. Make your check or money order payable to United States Treasury, and write your social security number or employer identification number on it. Send your payment to us in the enclosed envelope with a copy of this letter. The amount you owe is: | |
| Form | Tax | Unpaid Amount | Additional | Additional | Amount |
| Number | Period | From Prior Notices | Penalty | Interest | You Owe |
| If you recently paid this or if you can't pay it, call as soon as you get this letter. Our telephone number is at the top of this letter. If you disagree with our taking enforcement action, you may be able to work out another solution. Speak to the person whose name appears at the top of this letter, or ask for that person's manager. If you do not agree with the results, you may fill out Form 9423, Collection Appeals Request, to ask for Appeals consideration. | |
| The unpaid amount from prior notices may include tax, penalties, and interest you still owe. It also includes credits and payments we have received since our last notice to you. | |
| Sincerely | |
| Title | |
| Enclosures: | |
| Copy of Letter | |
| Envelope | |