IRS Lien/Levy Warning - Account in Jeopardy - What Should I Do?

The IRS typically sends these notices when they're preparing to take collection action, so you shouldn't ignore it. When you receive a notice about a potential lien or levy, it means the IRS has already sent previous notices about your tax debt that may have gone unaddressed. Even though you plan to have the amount taken from your refund, the IRS doesn't know that's your intention. From their perspective, they're just seeing an unpaid debt. I'd recommend calling the IRS at the number on your notice to let them know your situation. They can often put a temporary hold on collection actions if you explain you're waiting for documents to file your return. If you can't reach them by phone, setting up even a minimal payment plan (as low as $25/month) would stop the collection process and show good faith. The Online Payment Agreement on IRS.gov is quick and easy for amounts under $50,000.

After getting a similar notice last year, I was stressed for weeks until I found taxr.ai (https://taxr.ai) - their document analysis caught that the IRS had actually made a calculation error on my account. I uploaded my notice and tax records and they explained exactly what was happening and what to do. The step-by-step guidance for calling the IRS was perfect - turns out I didn't even owe the full amount they claimed! Their system checks for common IRS errors and identifies if you qualify for any resolution options. For a "jeopardy" notice like yours, time really matters, and they tell you exactly what to say when you call.

I was super skeptical about taxr.ai when I first saw it mentioned here, but I finally tried it last week when I got a CP2000 notice about unreported income. The document analysis was surprisingly helpful - it flagged that the IRS was trying to tax income that had already been reported on a different form (they were double-counting). Saved me from paying over $1,200 in taxes I didn't actually owe! The step-by-step response instructions made it easy to write a response letter. Wish I'd known about this last year when I just paid an incorrect tax bill because I was too intimidated by the IRS to fight it.

If you need to actually reach a human at the IRS (which you definitely should for a lien/levy notice), try https://claimyr.com - there's a video showing how it works here: https://youtu.be/_kiP6q8DX5c When I got a similar notice last year, I spent 3 days trying to call the IRS directly and kept getting disconnected after waiting on hold forever. Claimyr held my place in line with the IRS and called me when an agent was about to pick up. Saved me hours of hold time and stress. The IRS actually put a 120-day hold on my account once I explained I was waiting for documents, which gave me plenty of time to get everything filed properly.

I was 100% sure Claimyr was a scam when I first saw it mentioned. I mean, how could some service magically get through to the IRS when I couldn't after trying for DAYS? But I was desperate with a wage garnishment threat, so I tried it as a last resort. Holy crap it actually worked! Got connected to an IRS agent in about 45 minutes (while I was doing other things), explained my situation, and they put a 60-day hold on collections while I gathered my missing documents. The IRS person was actually really helpful once I could actually talk to them. Can't believe I wasted so many hours trying to call them myself.

Don't wait! I ignored one of these notices last year thinking I'd just let them take it from my refund and ended up with a lien on my credit report that dropped my score 78 points! Even though I paid it off when I filed, the lien stayed on my report and I had to file additional paperwork to get it removed. Total nightmare and affected my car loan rate.

Has anyone tried requesting your W2 information directly from the IRS instead of waiting for the employer? I had a similar situation and was able to get my wage information through the IRS transcript system which had enough info to file.

Just wondering - how much is the payment plan setup fee? I'm in a similar situation (owe about $800) and wondering if it's worth setting up a plan or just waiting until I file in a few weeks.

I completely understand your anxiety about this - the "jeopardy" language is definitely designed to get your attention! Here's what I'd recommend based on your situation: **Don't wait** - even though you're only waiting for one W2, that lien/levy notice means the IRS is ready to take action. A few key points: 1. **Call the IRS immediately** at the number on your notice. Explain you're waiting for a missing W2 and plan to file soon. They can often put a temporary hold (60-90 days) on collection actions. 2. **Request your wage transcript** from IRS.gov while you wait - this shows all reported W2 info and might have enough detail to file without the physical W2. 3. **Set up a minimal payment plan** if you can't reach them by phone. Even $25/month stops collection and shows good faith. Online setup is only $31 vs $107 by phone. The key thing is **communication** - the IRS doesn't know you plan to pay with your refund. From their perspective, you're just ignoring a debt. Once you make contact and explain your situation, they're usually reasonable about working with you. Don't risk a lien on your credit report over $650 - it's not worth the long-term damage for a relatively small amount. Take action today!

I had almost this exact same situation last year - owed about $700 and got that scary "jeopardy" notice while waiting for a delayed 1099 from a freelance gig. The language in those notices is definitely designed to get you moving fast! Here's what worked for me: I called the IRS number on the notice (took about 2 hours on hold, but I got through). The agent was actually really understanding when I explained I was just waiting for tax documents. She put a 90-day collection hold on my account, which gave me plenty of time to get everything sorted out. The key thing they told me is that once you receive that "lien/levy warning," you're basically at the final stage before they take action. They don't know you're planning to use your refund to pay it off - from their system, it just looks like you're ignoring the debt. Don't stress too much about the $650 amount, but definitely don't ignore the timeline. Even setting up a $25/month payment plan online would stop the collection process immediately if you can't get through by phone. You can always pay it off in full once you file and get your refund. The worst thing you can do is nothing - I've seen people end up with liens over tiny amounts just because they thought it wasn't worth dealing with. Take care of it this week!