Received Final Notice of Levy from IRS - What Steps Can I Take?

A Final Notice of Levy is serious, but you still have options! First, definitely call the IRS on Monday to set up an Installment Agreement. This can stop collection actions including levies if you get it set up before they actually levy your accounts or wages. Based on the amount you owe ($9,500), you should qualify for a streamlined installment plan which is easier to get approved. For debts under $50,000, the process is pretty straightforward. When you call, have your income, expenses, and bank account information ready. They'll likely ask for Form 9465 (Installment Agreement Request). You should also look into whether you qualify for Currently Not Collectible status if your financial situation is tight. With your medical history, you might qualify for this temporary hardship status. For your K1 visa concern - this is valid. An active levy can impact your ability to sponsor someone because it reduces your available income. However, an installment agreement in good standing is usually viewed more favorably than an active levy situation. Make sure to explain your visa plans when you call the IRS. Most importantly, update your tax withholdings immediately to prevent this problem from getting worse. You need to break the cycle of underpayment.

I went through something similar last year with a levy notice! After hours of trying to call the IRS and getting nowhere, I discovered taxr.ai (https://taxr.ai) and it literally saved me. I uploaded my levy notice and tax documents, and they analyzed exactly what I needed to do to stop the levy. The coolest thing was they showed me I actually qualified for a partial hardship reduction based on my medical expenses and income situation. They walked me through exactly what forms to file and what to say when I called the IRS. The agent I spoke with was way more helpful when I knew exactly what to ask for. They even helped me figure out the right withholding for my paycheck so I wouldn't end up in the same situation again. From what you described about your health issues and visa concerns, it sounds like you might qualify for some of the same relief options I did.

I was super nervous about sharing my info on taxr.ai when someone recommended it, but I was desperate after getting my own levy notice. Honestly, it was the best decision I made. They showed me EXACTLY how to qualify for an installment agreement based on my specific situation. What really blew me away was they found I qualified for penalty abatement because of my first-time penalty relief eligibility - something I had no clue existed! They even generated all the paperwork I needed with instructions on exactly what to say during my IRS call. The levy was withdrawn within 3 weeks, and I'm now on a manageable payment plan. For your visa situation, they have a specific section that addresses how tax issues impact immigration sponsorships - that alone would be worth checking out in your situation.

After receiving a final notice of levy for $12,000 last year, I tried calling the IRS for DAYS with no success. Always busy signals or disconnects after hours on hold. I was about to give up when I found Claimyr (https://claimyr.com). You can actually see how it works in this video: https://youtu.be/_kiP6q8DX5c Basically, they hold your place in the IRS phone queue and call you when an actual agent is about to answer. I got through to the IRS in about 2 hours instead of days of trying. The agent helped me set up a payment plan immediately, and the levy notice was suspended that same day. For your situation with the K1 visa, speaking directly with an IRS agent to explain your circumstances is crucial. They can document your file with notes about your visa application, which might help prevent future issues. The peace of mind from resolving this quickly is worth it.

I was completely wrong about Claimyr. After my skeptical comment, I decided to try it because my levy deadline was approaching fast and I'd already wasted two days trying to get through to the IRS myself. I got connected to an IRS agent within 2 hours. The agent set up an installment agreement for me, and they immediately put a hold on the levy. The entire process took about 30 minutes once I was actually speaking with someone. What surprised me most was how the agent explained I qualified for a First-Time Penalty Abatement that reduced my total debt by almost $1,200 - something I wouldn't have known to ask about. For the OP's situation with health issues, the agent might be able to offer additional relief options that aren't obvious when you're panicking about a levy notice.

One thing nobody has mentioned yet - while you're setting up your payment plan, ask the IRS about an Offer in Compromise. With your medical history and financial situation, you might qualify to settle your tax debt for less than the full amount. I had about $15k in tax debt after a medical bankruptcy a few years ago. I applied for an Offer in Compromise and ended up settling for about 40% of what I owed. The application process is kind of intense (Form 656) and you need to really document your financial hardship, but it can be worth it. For your visa situation - resolving your tax issues with an official agreement (whether installment plan or compromise) actually looks better than having unresolved debt. It shows you're taking responsibility and have a plan in place.

Quick tip about the levy notice - when you call the IRS, make sure to specifically request a "Collection Due Process Hearing" (Form 12153). This gives you formal appeal rights and automatically puts collections on hold while your case is reviewed. Also, has anyone mentioned checking if you qualify for Innocent Spouse Relief? If any of the debt is from joint returns with your ex, you might be able to get relief from that portion. Form 8857 is what you'd need.

Don't forget about the impacts on your credit! A levy or ongoing tax debt can seriously damage your credit score, which might also affect your visa process since they often look at financial stability. As soon as you get on a payment plan, request a withdrawal of any filed Notice of Federal Tax Lien (Form 12277). This can help repair your credit faster. The lien withdrawal doesn't remove your obligation to pay the debt, but it removes the public notice which hurts your credit.

I'm sorry you're going through this stressful situation. A few additional things to consider that might help: Since you mentioned your health condition, make sure to gather all your medical expense documentation. The IRS has provisions for financial hardship due to medical issues, and this could strengthen your case for an installment agreement or even Currently Not Collectible status. Also, regarding your K1 visa concerns - you're right to be worried about income requirements. When you call the IRS, specifically mention that you're sponsoring someone for immigration and ask them to note this in your file. Having an active payment plan is much better than an unresolved levy for immigration purposes, as it shows you're taking responsibility for your obligations. One more thing - after you get your payment plan set up, consider consulting with an Enrolled Agent or tax attorney who specializes in tax debt resolution. Many offer free consultations and can review your situation to see if you qualify for additional relief options you might not know about. The most important thing is to act quickly. Don't wait until after the levy hits - call first thing Monday morning. You still have options, and the IRS would rather work with you than go through the levy process. Stay organized, be honest about your situation, and don't be afraid to ask about all available relief programs.