Getting an IRS Final Notice of Intent to Levy (Letter 1058 or LT11) can feel terrifying — especially when your paycheck is at stake. But here’s the truth: you have rights and time to act before the IRS touches your wages. The IRS must follow specific steps before it can garnish your income. If you respond quickly, you can halt the levy, negotiate an affordable payment plan, or even qualify for temporary protection under hardship status.
This article breaks down how to stop an IRS levy before it hits your paycheck.
📘 Official References: Levy — IRS Seizure of Property
Understanding the IRS Levy Process
Before a levy happens, the IRS must take a series of steps required by law. If you respond at any point in this process, you can stop it.
The IRS Must:
- Assess your tax and send a bill (Notice and Demand for Payment)
- Send a Final Notice of Intent to Levy and your Right to a Hearing (Letter 1058 or LT11)
- Wait 30 days after the notice before enforcing a levy
If you take no action within that 30-day window, the IRS can contact your employer to withhold wages directly from your paycheck.
💡 Key takeaway: The IRS can’t suddenly take your paycheck — you always have an opportunity to prevent it if you act quickly.
What Happens When the IRS Levies Your Wages?
When a wage levy takes effect, your employer must withhold a portion of every paycheck and send it to the IRS. The amount you keep depends on your filing status and number of dependents.
📘 Source: IRS Publication 1494 — Tables for Figuring Amount Exempt from Levy on Wages
Steps to Stop an IRS Levy Before It Hits Your Paycheck
Here’s how to protect your wages before the IRS starts garnishing them:
Step 1: Act Immediately After Receiving the Final Notice
Once you receive a Final Notice of Intent to Levy, the 30-day clock starts. Contact the IRS right away using the phone number on your notice.
- Confirm how much you owe
- Ask if your account is assigned to a Revenue Officer
- Request time to submit a resolution plan
If you ignore the letter, the IRS assumes you’re unwilling to cooperate — and proceeds with enforcement.
📘 Reference: Understanding Your IRS Notice or Letter
Step 2: Request a Collection Due Process (CDP) Hearing
Filing Form 12153 within 30 days of receiving your Final Notice stops the levy entirely while your appeal is pending. At the hearing, you can:
- Propose a payment plan or Offer in Compromise
- Challenge incorrect tax assessments
- Argue for Currently Not Collectible (CNC) status if you can’t pay
💡 Pro tip: A CDP hearing freezes all levy action until your case is reviewed — giving you valuable breathing room.
📘 Form: IRS Form 12153 – Request for a Collection Due Process Hearing
Step 3: Enter an Installment Agreement
A payment plan is often the simplest way to stop enforcement.
📘 Reference: Installment Agreement
Step 4: Apply for Currently Not Collectible (CNC) Status
If you can’t afford any payment, the IRS can mark your account as Currently Not Collectible. This stops all collection activity — including wage levies — temporarily.
💡 While CNC doesn’t erase your debt, it gives you time to recover financially and prevents garnishment.
📘 Reference: Currently Not Collectible Program
Step 5: File an Offer in Compromise (OIC)
If you can’t afford to pay the full amount, you may qualify for an Offer in Compromise, allowing you to settle your tax debt for less. Submitting an OIC automatically pauses all collection activity, including levies, during IRS review.
📘 Reference: Offer in Compromise — IRS
What If the Levy Has Already Started?
If your employer has already begun garnishing wages, you can still:
- Request a Levy Release due to hardship
- Enter a payment plan or CNC status
- Ask for an Appeals Hearing if you never received proper notice
Once approved, the IRS contacts your employer to lift the levy and stop future deductions.
📘 Reference: Release of Levy on Wages, Salary, and Other Income
How a Tax Attorney Can Help?
A tax attorney can:
- Stop a levy immediately by contacting the IRS on your behalf
- Negotiate payment plans or settlements
- File emergency appeals and hardship claims
- Represent you at hearings and communicate with Revenue Officers
- Prevent future enforcement through compliance management
Once Form 2848 (Power of Attorney) is filed, the IRS must deal with your attorney directly.
📘 Reference: IRS Form 2848 – Power of Attorney
Need help with a similar issue? Contact our firm today for a consultation.
The IRS doesn’t want to take your paycheck — it just wants resolution. If you act quickly after receiving a levy notice, you can stop the levy, protect your wages, and arrange a manageable payment plan.
Don’t wait for your employer to get a notice from the IRS. Contact Pelham PLLC as soon as you receive a Final Notice of Intent to Levy. Fast action can mean the difference between peace of mind and lost income.
FAQs
Can I stop a wage levy once it’s started?
Yes. If you set up a payment plan or prove hardship, the IRS can release the levy and return future wages to you.
How much of my paycheck can the IRS take?
The IRS uses Publication 1494 to determine how much income you can keep based on your filing status and dependents. The rest is garnished.
Can I appeal a levy after 30 days?
Yes, you can request an Equivalent Hearing.
Can I prevent future levies?
Yes. File all returns, stay current on taxes, and keep your payment agreement active. Compliance is your best protection.
