The LT73 means the IRS has issued a levy specifically for unpaid federal employment taxes. Employment tax debts are treated with special urgency by the IRS because they involve trust fund taxes — money withheld from employees' paychecks that was supposed to be deposited with the government.
Why Employment Tax Levies Are Different
The IRS prioritizes employment tax collection above most other debts. Trust fund taxes (federal income tax withholding plus the employee share of FICA) are considered the most serious category of tax debt. The IRS views failure to deposit trust fund taxes as using government money to fund your business, and they pursue collection aggressively.
Employment tax levies can target business bank accounts, accounts receivable, equipment, inventory, and real property. For sole proprietors and responsible persons assessed with the Trust Fund Recovery Penalty, personal assets are also at risk.
Immediate Steps
Contact the IRS immediately to discuss resolution. Employment tax levies can shut down a business in a single day by freezing operating accounts. If the business is viable, the IRS may prefer to release the levy and set up a payment arrangement that keeps the business operating (and generating tax deposits), rather than seizing assets and destroying the revenue source.
If a CDP hearing request is still available (within 30 days of the final levy notice), file it immediately. CDP stops the levy while the hearing is pending.
Trust Fund Recovery Penalty
Be aware that while the business is dealing with the levy, the IRS may simultaneously be pursuing the Trust Fund Recovery Penalty against responsible individuals. The business debt and the personal TFRP assessment are separate collection tracks that can run in parallel.
If your business has been levied for employment taxes, call us immediately at (813) 229-7100. Every hour matters.