The LT75 is among the most aggressive notices the IRS sends. The IRS is notifying you of their intent to seize physical property to satisfy your unpaid tax debt. This goes beyond bank levies and wage garnishments. The IRS is talking about taking your car, your equipment, your inventory, or in extreme cases, your home.
When the IRS Seizes Property
Physical property seizure is rare. The IRS uses it as a last resort when other collection methods have failed and the taxpayer has significant equity in assets. Before seizing property, the IRS must have sent all required notices, attempted other collection methods, and determined that the seizure would yield net proceeds after the costs of seizure and sale.
The IRS will not seize property if the costs of seizure and sale would exceed the equity in the property. They're looking for assets with significant value that can be sold to satisfy the debt.
Your Rights
You have 30 days from the LT75 to pay the balance, set up a payment arrangement, or take other action to prevent the seizure. If you received a prior final levy notice (CP90, LTR 1058, LT11) and filed a timely CDP hearing request, seizure should be suspended while the hearing is pending.
If the seizure would cause economic hardship, the IRS is required to release the levy under IRC Section 6343. Demonstrate that seizing the property would leave you unable to meet basic living expenses or would deprive you of the means to earn income (seizing a vehicle you need for work, for example).
Immediate Action Required
The LT75 is not a notice to put aside. Contact the IRS or a tax professional immediately. Explore every resolution option: installment agreement, offer in compromise, currently not collectible status. Any of these can prevent a seizure if implemented before the IRS acts.
If you've received an LT75, call us immediately at (813) 229-7100. Property seizure is preventable with the right action at the right time.