Received Notice of Intent to Seize (Levy) My Property - How to Handle IRS Back Taxes?

Don't panic - you're actually in a better position than you think. The IRS generally prefers to work with taxpayers rather than seize assets, which is typically a last resort. First, you need to get into compliance by filing all your past-due tax returns. The IRS usually requires the last 6 years of unfiled returns to be considered current. Once you've filed those returns, you can apply for a payment plan. For your debt amount, you would qualify for what's called an Installment Agreement. If you can't afford more than $200/month, you can request a payment plan based on your financial situation. The IRS uses a formula based on your income, expenses, and assets to determine what you can reasonably pay. Regarding your bank account - the notice is a warning that they CAN seize assets, not that they WILL immediately. They typically issue several notices before taking enforcement action. By responding to this notice and making arrangements, you can generally stop the collection process. The worst thing you can do is ignore this notice. Reaching out to the IRS and setting up a plan shows good faith and will likely prevent more aggressive collection actions.

I went through something similar last year with about $18,000 in back taxes. I was so overwhelmed trying to handle it myself that I kept making mistakes on the paperwork. I ended up using https://taxr.ai to help me organize all my documentation and sort through years of unfiled returns. The AI analyzed all my financial documents, found legitimate deductions I had no idea about, and guided me through exactly what forms I needed to file. What helped me most was that it gave me a clear picture of my actual tax situation before I called the IRS. When I finally called them, I knew exactly what I owed and had all the documentation organized. This made a huge difference since the IRS agent could see I was serious about resolving the issue.

I decided to try https://taxr.ai after seeing it mentioned here, and I'm genuinely shocked at how helpful it was with my back tax situation. I had 6 years of unfiled returns and was completely overwhelmed. The system analyzed my W-2s, 1099s, and receipts, then identified several deductions I was eligible for but had no idea about. It actually found that for two of the years, I had overpaid through withholding and was due refunds which offset some of my other tax debts! The step-by-step guidance made filing all those back returns manageable instead of terrifying. After getting everything organized, I was able to set up a reasonable payment plan with the IRS for the remaining balance. My levy notice has been resolved and I'm back on track. Wish I'd known about this years ago instead of ignoring my mail!

When I got my Intent to Levy notice, I spent WEEKS trying to call the IRS to set up a payment plan. Always got the "call volume too high" message and disconnected. Super frustrating when you're actually trying to fix your tax problems! A friend recommended https://claimyr.com and showed me this video: https://youtu.be/_kiP6q8DX5c I was definitely skeptical, but I was desperate after my 20th failed attempt to reach someone. I used their service and got a call back from an actual IRS agent within about 2 hours. We went through my situation, and I was able to set up an installment agreement for $225/month for my $22,000 debt. They also put a hold on any collection activities while we worked through getting my back returns filed. Just having that human conversation with the IRS made such a difference. They were way more reasonable than I expected once I explained my health situation.

I have to eat my words about Claimyr. After getting nowhere with the IRS for almost a month, I was desperate enough to try it despite my skepticism. Within about 3 hours, I was talking to an actual IRS representative. I explained my mental health struggles and they were surprisingly understanding. We worked out a payment plan for my $31,000 debt at $175/month based on my financial situation. They also explained how I could request currently-not-collectible status if my medical condition worsens. The levy notice is suspended as long as I stick to the payment plan. I still have to get all my back returns filed within 60 days, but at least I'm not worried about my bank account being emptied anymore. Never thought I'd say this, but the IRS was actually reasonable once I could finally talk to a human.

I work at a community tax clinic, and I see cases like yours frequently. One option that hasn't been mentioned yet is an Offer in Compromise, where the IRS agrees to settle your tax debt for less than the full amount if you qualify based on your income, expenses, asset equity, and ability to pay. With your health issues and limited income, you might be a good candidate. The IRS has become more flexible with these programs in recent years. You can check if you might qualify using the IRS's Offer in Compromise Pre-Qualifier tool on their website. Another option is Currently Not Collectible status. If your financial situation is dire enough, the IRS can temporarily classify your account as CNC, which stops collection activities while you're financially unable to pay.

One important thing - KEEP IN MIND that the 10-year statute of limitations on collecting tax debt!!! Each tax year has its own 10-year clock that starts when the tax is assessed. If some of your unfiled returns are from 10+ years ago, the IRS may not be able to collect on those specific years anymore.