The LTR 2030 is a notice that the IRS has issued a levy to a third party. This isn't a warning about future levy action. The levy has been issued. A bank, employer, client, or other party holding your assets has been directed to turn those assets over to the IRS.
How Third-Party Levies Work
The IRS sends a levy notice (Form 668-A for bank levies, Form 668-W for wage levies) directly to the third party. For bank levies, the bank freezes the funds in your account for 21 days, then sends the money to the IRS. For wage levies, your employer begins withholding a portion of each paycheck and sending it to the IRS. For other levies (accounts receivable, commissions, rental income), the third party sends amounts owed to you directly to the IRS instead.
The LTR 2030 notifies you that this process has begun. By the time you receive it, the levy is already in effect.
The 21-Day Window for Bank Levies
Bank levies include a 21-day holding period before the bank sends funds to the IRS. During those 21 days, you can contact the IRS to negotiate a levy release. If you can set up an installment agreement, submit an offer in compromise, demonstrate financial hardship, or resolve the underlying balance, the IRS may release the levy before the bank sends the funds.
That 21-day window is your best chance to recover the frozen funds. After the bank sends the money, getting it back is much harder.
Levy Release
The IRS must release a levy if the underlying tax is paid, the collection period expired before the levy was served, releasing the levy would facilitate collection, you've entered into an installment agreement that provides for levy release, or the levy creates an economic hardship (you can't meet basic living expenses).
Economic hardship is the most common basis for release when the taxpayer can't pay. You'll need to demonstrate hardship through a financial statement (Form 433-A or 433-F) showing that the levied funds are necessary for basic living expenses.
If the IRS levied your assets, call us immediately at (813) 229-7100. Time is critical, especially with bank levies.