Automated Tax Credit - Tax Debt Resolution
Glossary

Letter 2802C: Warning of Levy Action

The Letter 2802C is sent by the IRS to warn taxpayers that they are at risk of having their assets or wages levied to satisfy unpaid tax debt. This letter is typically sent after the taxpayer has failed to respond to previous notices of balance due or collection actions.

Key elements of Letter 2802C:

  • Levy Warning: The letter warns the taxpayer that the IRS will begin seizing assets, such as bank accounts or wages, unless immediate action is taken to resolve the debt. This is a final opportunity to avoid the levy by contacting the IRS.
  • Payment or Resolution Options: Taxpayers can avoid the levy by paying the full balance due, setting up an installment agreement, or negotiating an offer in compromise. The letter will provide instructions on how to resolve the debt.
  • Right to a Hearing: Taxpayers may request a Collection Due Process (CDP) hearing if they disagree with the levy action or believe they have already resolved the debt. The letter will include information on how to request a hearing.
  • Consequences of Inaction: If the taxpayer does not respond to Letter 2802C, the IRS will proceed with levying their assets or wages to satisfy the unpaid tax debt.

Letter 2802C is a serious warning that the IRS is preparing to take aggressive collection actions, and taxpayers should act quickly to avoid a levy.

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