ST73 Notice: What Is It and How Should You Respond?
Summary:
The ST73 Notice is issued by the IRS when a taxpayer has unpaid federal employment taxes. This notice alerts the taxpayer to the outstanding debt and informs them that a levy has been placed to collect the unpaid amount. It provides information on how to resolve the debt, either by paying in full or setting up a payment plan, and warns about additional penalties and interest that may accrue if the debt is not addressed promptly.
Receiving a notice from the IRS, such as the ST73 Notice, can be stressful and overwhelming. The ST73 typically indicates that you have unpaid federal employment taxes, and the IRS has taken action by issuing a levy to collect the unpaid balance. Failing to respond to this notice could result in additional penalties, interest, and further collection actions, such as garnishment of wages or seizure of assets. In this article, we will guide you through what the ST73 Notice entails, why you received it, and how to address it effectively. Whether you can pay the full amount or need to explore other payment options, resolving the notice promptly will prevent further complications.
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What is the ST73 notice?
The ST73 Notice is a formal communication from the IRS that indicates you have outstanding federal employment tax obligations. Specifically, the notice informs you that the IRS has issued a levy to collect these taxes. A levy allows the IRS to seize property, bank accounts, or other assets to satisfy unpaid taxes. The ST73 Notice will typically include details such as:
- The total amount you owe, including penalties and interest.
- Information on how the levy will be carried out (e.g., through bank account garnishment or asset seizure).
- Instructions on how to stop the levy by paying your balance or setting up a payment plan.
Pro Tip
Set up IRS account alerts online to get real-time notifications on any changes to your tax return or account. This helps you stay updated on adjustments and due dates.
Why did I receive the ST73 notice?
You received the ST73 Notice because you have unpaid federal employment taxes. These taxes are typically associated with payroll taxes that employers are required to withhold from their employees’ wages and submit to the IRS. If you are an employer and fail to submit these taxes, the IRS may issue a notice like ST73 to notify you of the unpaid balance and initiate the levy process.
There are several reasons you may have fallen behind on these payments:
- Financial hardship preventing timely payment of employment taxes.
- Miscommunication or errors in reporting payroll information.
- Negligence or oversight in filing payroll tax returns.
If the IRS has issued a levy, this means they have already attempted to collect the debt through less severe measures, such as sending notices or reminders about the balance due. The ST73 Notice signifies that the IRS is moving forward with stronger collection actions.
What should you do when you receive the ST73 notice?
It is crucial to respond to the ST73 Notice promptly to avoid further penalties or interest charges. Here are the steps you should take when you receive this notice:
- Read the notice carefully: Ensure you fully understand the amount you owe and the terms of the levy. Review your financial records to verify the accuracy of the IRS’s claim.
- Contact the IRS: If you have questions or need clarification, you can contact the IRS using the phone number provided on the notice. This is especially important if you believe the notice was sent in error or if you have already paid the balance.
- Pay your balance in full: If possible, pay the total amount owed to stop the levy and prevent further collection actions. You can make payments online or through other methods indicated on the notice.
- Set up a payment plan: If you cannot pay the full amount, consider applying for an installment agreement with the IRS. This will allow you to make manageable monthly payments while avoiding future levies. To qualify for an installment agreement, you must be up-to-date with all required tax filings.
- File an appeal: If you believe the levy is unjust or if you have already addressed the tax issue, you may request an appeal using Form 12153 (Request for a Collection Due Process or Equivalent Hearing). This will temporarily halt the levy until the appeal is resolved.
Pro Tip
Consider working with a tax professional if you’re facing financial hardship or need help setting up a payment plan with the IRS. They can help negotiate terms and ensure you stay compliant.
How the ST73 notice affects you
The ST73 Notice can have serious financial implications if not addressed promptly. Here’s how the notice may affect your financial situation:
- The IRS can seize money from your bank accounts, garnish your wages, or take other assets to satisfy the tax debt.
- Penalties and interest will continue to accumulate on the unpaid balance, increasing the amount you owe.
- Failure to resolve the notice can negatively impact your credit score and future tax filings, making it harder to manage your business finances.
The key to minimizing these impacts is to act quickly. The sooner you address the notice, the less severe the consequences will be.
What are your payment options?
If you are unable to pay the full amount immediately, you still have options to resolve the debt and stop the levy. Consider the following payment options:
- Installment agreement: This allows you to make smaller monthly payments over time to settle your tax debt. You must be current with all your tax filings to qualify, and the IRS will provide specific instructions on how to apply for an installment agreement.
- Offer in compromise (OIC): In some cases, you may be eligible to settle your tax debt for less than the total amount owed through an OIC. This is generally available to taxpayers who cannot afford to pay the full amount and meet strict eligibility criteria.
- Partial payment installment agreement (PPIA): If you cannot pay the full amount but can make some payments, you may qualify for a PPIA. This arrangement allows you to pay part of your debt over time, but the IRS will still assess penalties and interest on the remaining balance.
Pro Tip
Always review IRS notices promptly. Ignoring a notice like the ST73 can lead to increased penalties, interest, or enforcement actions, such as wage garnishment or asset seizure.
How to avoid future IRS notices
To avoid receiving future notices like the ST73, it’s important to stay current with your federal employment tax obligations. Here are some best practices to help you stay compliant with the IRS:
- File and pay taxes on time: Make sure you meet all deadlines for filing payroll tax returns and submitting payments to the IRS. Late filings and payments can lead to penalties and notices.
- Set up a payment reminder system: Use an automated system or calendar reminders to ensure you never miss a tax deadline.
- Work with a tax professional: If managing your business taxes feels overwhelming, consider hiring a tax professional to handle your filings and payments accurately.
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Frequently asked questions
What is an IRS levy and how does it work?
An IRS levy is a legal action that allows the IRS to seize a taxpayer’s assets in order to satisfy a tax debt. This can include funds from bank accounts, garnishing wages, or taking other property. A levy is typically issued after the IRS has sent several notices to the taxpayer about the outstanding tax debt. The ST73 Notice indicates that the IRS has already initiated the levy process to collect unpaid employment taxes. If you receive a notice like this, it’s critical to act quickly to either pay the debt or arrange a payment plan to avoid further seizure of assets.
Can I stop the IRS levy once it has been issued?
Yes, it is possible to stop an IRS levy, but you need to act fast. There are several ways to halt the levy:
- Paying the full amount owed.
- Setting up an installment agreement with the IRS to pay the debt over time.
- Filing an appeal using Form 12153 to request a Collection Due Process (CDP) hearing. This will pause the levy while your appeal is being reviewed.
- Submitting an Offer in Compromise (OIC), if eligible, to settle the debt for less than the total amount.
Taking swift action can help minimize the impact of the levy on your finances.
What if I disagree with the amount the IRS says I owe?
If you believe the amount stated in the ST73 Notice is incorrect, you have the right to dispute it. Begin by reviewing your tax records and verifying the IRS’s calculations. If you still disagree with the amount, you can request an appeal. Filing Form 12153 (Request for a Collection Due Process Hearing) will allow you to challenge the levy and the balance due. During this process, collection actions will be suspended until your appeal is resolved.
How does an installment agreement with the IRS work?
An installment agreement allows you to pay your tax debt in smaller, more manageable payments over time instead of in one lump sum. Once you set up an installment agreement, the IRS will pause further collection actions, such as levies. However, interest and penalties will continue to accrue on the unpaid balance. To qualify, you must be current with all your tax filings. The IRS offers different types of payment plans, depending on your financial situation and the amount owed. Contact the IRS or a tax professional to determine which plan is right for you.
What happens if I ignore the ST73 notice?
Ignoring the ST73 Notice can lead to severe financial consequences. The IRS will proceed with the levy, which means they can legally seize your assets, including bank account funds, wages, and other property. Additionally, penalties and interest will continue to accrue on your unpaid tax balance, further increasing the amount you owe. In some cases, failure to address the notice could result in enforcement actions, such as liens placed on your property or other legal actions. It’s essential to respond as soon as possible to avoid these outcomes.
Need help understanding other IRS letters and notices? Visit our comprehensive guide to IRS Letters and Notices or search for the document you received in the table below.
| CP01 | The IRS verified your claim of identity theft and will monitor your account. |
| CP01H | The IRS received a tax return with a social security number that belongs to a dead person. |
| CP02H | Money is due on an amended return based on a grant received due to Hurricane Katrina, Rita, or Wilma. |
| CP03C | You received the First-Time Homebuyer Credit for a house you purchased. |
| CP04 | You may be eligible for tax deferment because either you or a spouse served in a combat zone, a qualified contingency operation, or a hazardous duty station during the tax year specified on your notice. |
| CP08 | You may be entitled to additional money due to the Additional Child Tax Credit. |
| CP10 | Your tax return changed due to a miscalculation, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP10A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP11 | You owe money because the IRS amended your return due to a miscalculation. |
| CP11A | Your tax return changed due to a miscalculation of the Earned Income Credit, and the refund you wanted to apply to an estimated tax payment also changed. |
| CP11M | Your tax return changed due to a miscalculation of the Making Work Pay and Government Retiree Credit, and the refund you wanted to apply to an estimated tax payment has changed. |
| CP12 | You are due a bigger refund because the IRS corrected one or more mistakes on your tax return. |
| CP12A | The IRS made changes to correct the Earned Income Credit (EIC) claimed on your tax return. |
| CP12E or CP12F | The IRS corrected a miscalculation on your return. |
| CP12M | The IRS made changes to the computation of the Making Work Pay and/or Government Retiree Credits on your return. |
| CP12R | The IRS made changes to the computation of the Rebate Recovery Credit on your return. |
| CP13 | The IRS made changes to your return due to a miscalculation. There is no refund or amount due. Your balance is zero. |
| CP13A | The IRS made changes to your return due to a miscalculation of the Earned Income Credit. There is no refund or amount due. Your balance is zero. |
| CP13M | The IRS made changes to your return due to a miscalculation of the Making Work Pay credit or the Government Retiree Credit. There is no refund or amount due. Your balance is zero. |
| CP13R | The IRS made changes to your return due to a miscalculation of the Recovery Rebate Credit. There is no refund or amount due. Your balance is zero. |
| CP14 | You owe money on unpaid taxes. |
| CP16 | The IRS made changes to your return due to a miscalculation. The refund you were due was applied to other tax debts. |
| CP21A | You owe money due to the changes you requested that the IRS make on your tax returns. |
| CP21B | You are due a refund due to the changes you requested that the IRS make on your tax returns. The money should arrive within 2 to 3 weeks. |
| CP21C | The IRS made the requested changes to your tax return. You will not receive a refund, and there is no tax due. Your balance is zero. |
| CP21E | As a result of your recent audit, the IRS made changes to your tax return, and you owe money as a result of those changes. |
| CP21I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP22A | The IRS made the changes you requested, and you owe money as a result. |
| CP22E | As a result of your recent audit, the IRS changed your tax return, and you now owe money. |
| CP22I | The IRS made changes to your tax return relating to the Individual Retirement Arrangement (IRA) taxes. You owe money due to the changes. |
| CP23 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You owe taxes due to these changes. |
| CP24 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP24E | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. This resulted in an overpayment of estimated taxes. |
| CP25 | The IRS changed your return because there was a difference between the amount of estimated tax payments listed on your tax return and the amount actually posted to your account. You are not due a refund, nor do you owe any money. Your balance is zero. |
| CP31 | You need to update your address because your refund check was returned to the IRS. |
| CP45 | The IRS was unable to apply your overpayment to your estimated tax as you requested. |
| CP49 | The IRS used all or part of your refund to pay a tax debt. |
| CP53 | Your refund check will be sent by mail because the IRS can’t provide your refund through direct deposit. |
| CP57 | The bank declined your payment, so the IRS was unable to draft funds from your bank account. |
| CP71 | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71A | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71C | A reminder of the amount you owe in tax, penalty, and interest. |
| CP71D | A reminder of the amount you owe in tax, penalty, and interest. |
| CP88 | The IRS is holding your refund because you haven't filed one or more tax returns, and it believes you will owe tax. |
| CP90 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy in a Collection Due Process hearing. |
| CP91 | The IRS will levy up to 15% of your social security benefits for unpaid taxes. |
| CP120 | The IRS needs documentation of your tax-exempt status. |
| CP120A | Your organization’s tax-exempt status has been revoked because it failed to file a Form 990 series return for three consecutive years. |
| CP130 | You may no longer need to pay the Alternative Minimum Tax (AMT) because your tax return filing requirements changed. |
| CP152 | The IRS received your return. |
| CP153 | The IRS will send your refund by mail because your direct deposit did not go through. |
| CP161 | You have an unpaid balance due to the IRS. |
| CP166 | Your monthly payment to the IRS did not go through due to insufficient funds in your bank account. |
| CP178 | You may no longer owe excise tax because your tax return filing requirements changed. |
| CP231 | You need to update your address because your refund was returned to the IRS. |
| CP259 | You did not file the business tax return identified in the notice. |
| CP259A | You should have filed these forms but did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax, or Form 990-N (e-Postcard). |
| CP259B | The IRS requires you to file these forms but did not – Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259C | The IRS believes that you are a private foundation, but did not file the required Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation. |
| CP259D | You must file this form, but you did not – Form 990-T, Exempt Organization Business Income Tax Return. |
| CP259E | You should have filed this form, but you did not – Form 990-N (e-Postcard) or Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP259F | The IRS requires you to file this form but did not – Form 5227, Split-Interest Trust Information Return. |
| CP259G | The IRS requires you to file this form, but you didn’t – Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations. |
| CP259H | As a tax-exempt political organization, you must file this form, but you did not – Form 990/990-EZ, Return of Organization Exempt From Income Tax. |
| CP276A | You submitted your tax liability schedule incorrectly. The IRS typically charges a Federal Tax Deposit (FTD) penalty for this but did not this time. |
| CP276B | The IRS did not receive the correct amount of tax deposits. It normally charges a Federal Tax Deposit (FTD) penalty but did not this time. |
| CP297 | The IRS is notifying you of its intent to levy certain assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP297A | The IRS has levied your assets for unpaid taxes. You have the right to dispute the levy at a Collection Due Process hearing. |
| CP298 | The IRS notifying you of its intent to levy up to 15% of your social security benefits for unpaid taxes. |
| CP501 | You have a balance due on one of your tax accounts. |
| CP503 | You have an unpaid balance on one of your accounts, and the IRS has not heard from you. |
| CP504 | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy your state income tax refund to apply it to the amount you owe. |
| CP504B | You have an unpaid amount due on your account. If you do not pay immediately, the IRS will levy certain property or rights to property to apply it to the amount you owe. |
| CP521 | A reminder that you have an installment agreement payment due. |
| CP523 | You have defaulted on your payment agreement. Therefore the IRS is terminating the agreement and will levy your assets. |
| CP601 | Usted tiene un saldo pendiente de pago (dinero que le debe al IRS) en una de sus cuentas contributivas. |
| CP603 | No hemos recibido respuesta de parte de usted y todavía tiene un saldo sin pagar en una de sus cuentas contributivas. |
| CP604 | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará cualquier reembolso de impuestos estatales al que tenga derecho y aplicarlo al pago de su deuda. |
| CP604B | Usted tiene un saldo sin pagar en su cuenta. De no pagar esta cantidad inmediatemente, el IRS embargará ciertas propiedades o derechos de propiedad y lo aplicará al pago de su deuda. |
| CP621 | Este aviso es para notificarle que usted tiene un plan de pagos a plazos vencido. Por favor, envíe el pago inmediatamente. |
| CP623 | Este aviso es para informarle nuestra intención de cancelar su plan de pagos a plazos y confiscar (embargar) sus bienes. Usted incumplió en su acuerdo. |
| CP711 | Nosotros realizamos cambios a su planilla debido a que entendemos que hubo un cálculo erróneo. Como resultado de estos cambios, usted adeuda dinero por sus contribuciones. |
| CP721 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP722 | Hicimos el(los) cambio(s) que usted solicitó a su declaración de impuestos para el año tributario que aparece en su aviso. Como resultado de éste(estos) cambio(s) usted debe dinero en sus impuestos. |
| CP771 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP772 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP773 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP774 | Usted recibió este aviso para recordarle sobre la cantidad que adeuda en contribuciones, multas e intereses. |
| CP959 | Usted no radicó su planilla de contribución de negocios identificada en este aviso. |
| CP2000 | The income or payment information on file doesn’t match your tax return. The discrepancy may result in an increase or decrease in your tax due. |
| CP3219A | The IRS has received information that is different from what you reported on your tax return. This may result in an increase or decrease in your tax. |
| CP3219N | The IRS didn’t receive your tax return, so it calculated your return based on the information received from employers, financial institutions, and others. If you want to challenge the proposed tax, you have 90 days from the date of this notice. If you are outside the country, you have 150 days. |
| Letter 0012C | The IRS needs additional information to process your tax return. |
| Letter 0484C | The IRS wants a completed |
| Letter 0525 | Updates you on proposed changes after an IRS examination. Any changes are explained and details the refund due or taxes owed. |
| Letter 531 | IRS Notice of Deficiency. The information the IRS received about you was different from what you reported on your return. |
| Letter 0668D(LP 68) | The IRS released their levy. |
| Letter 0549C | Your tax bill was paid. |
| Letter 0681C | The IRS accepted your payment proposal. However, this is not a formal Installment Agreement. |
| Letter 0757C | You did not adhere to the terms of your Installment Agreement. |
| Letter LT 11 | The IRS plans to seize your property or rights to property. |
| Letter 1058 | The IRS has not received your payment. It plans to seize your property or rights to property. |
| Letter 1615 (LT 18) | You must respond to the IRS within 10 days of this notice regarding past due tax returns. |
| Letter 1737 (LT 27) | Complete and sign Form 433F, Collection Information Statement. |
| Letter 1961C | Your application for a Direct Debit Installment Agreement was declined. It explains why and what you need to do to qualify. |
| Letter 1962C | Your application for a |
| Letter 2050 (LT 16) | The IRS is trying to collect unpaid taxes from you from returns that have been filed or from returns that have not been filed. |
| Letter 2257C | The IRS is providing the payoff amount that you requested. |
| Letter 226-J | An IRS letter to large employers notifying them that they may be liable for an Employer Shared Responsibility Payment (ESRP). |
| Letter 2271C | A request for an Installment Agreement has been approved. It explains the fees and how to qualify for a Low Income Fee Reduction. The letter may also request missing information. |
| Letter 2272C | An IRS letter explaining why your request to pay the balance due in installments was declined. |
| Letter 2273C | A confirmation letter of your request to pay the balance due in installments. It contained the amount to pay, fees charged, and where to send payment. Instructions on how to apply for the Low Income Fee Reduction included. |
| Letter 2318C | A response to a request to pay taxes due to payroll deductions. It also explains the fees that are charged. |
| Letter 2357C | The IRS is admitting that it did not send you the balance due notices that it should have. |
| Letter 2603C | The IRS accepted your installment agreement. The IRS will file a Notice of Federal Tax Lien on your personal property. |
| Letter 2604C | The IRS has accepted your request for installment payments. This IRS letter provides the monthly payment, the address where to send it, and the fees charged. The letter also provides instructions on how to apply for the Low Income Fee Reduction. |
| Letter 2761C | The IRS is requesting your combat zone service dates to ensure that it provides you with the special provisions and protection of the combat zone deferment. Copies of military orders or other documentation to support your time served may be requested. Civilians working in support of the Armed Forces may be required to provide a Letter of Authorization or a letter from their employer. |
| Letter 2789C | An annual reminder notice, as required by law, of the balance due to the IRS. It explains that penalties and interest continue to accrue until the balance is fully paid. |
| Letter 2840C | Confirms your Installment Agreement request and includes the payment amount and due date. This IRS letter explains the fees charged for paying monthly and explains how to apply for the Low Income Fee Reduction (if you qualify). |
| Letter 3030C | Provides an explanation of the tax, penalty, and interest still due on your account. |
| Letter 3127C | A confirmation of your request to make a change to your Installment Agreement. This IRS letter explains the fees for the change. Changes can be to the payment amount or due date, or it can include additional liabilities. |
| Letter 3174 | A reminder of taxes due after the IRS has sent a Notice of Intent to Levy. |
| Letter 3217C | The IRS has accepted your request to pay the balance in installments. This IRS letter provides your payment amount, the due date, and fees charged. The letter also provides instructions on applying for the Low Income Fee Reduction (if you qualify). |
| Letter 3228 (LT 39) | A request to pay the balance due within 10 days using the envelope provided. |
| Letter 3500 | The IRS has received your documents, and it needs additional time to review them. |
| Letter 3572 | Your Federal Income Tax Return has been selected for examination. The IRS auditor requests that you call to schedule an audit appointment. |
| Letter 4883C | The IRS received your federal income tax return but needs more information to verify your identity in order to process your tax return accurately. |
| Letter 4903 (LT 26) | You must file your tax returns immediately. The IRS has previously contacted you, but it did not receive a response. |
| Letter LP 47 | The IRS is trying to locate the person identified in the letter and is requesting that you provide their new address. |
| Letter LP 59 | The IRS has not received a response to the notice of levy it previously sent. |
| Audit Letter 2205 | The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or the taxpayer’s home, place of business, or accountant’s office (field audit). |
| Letter 915 | You recently underwent an audit, and the IRS informs you that you now owe taxes. |
Key takeaways
- The ST73 Notice is issued by the IRS when a taxpayer has unpaid federal employment taxes, prompting the IRS to issue a levy.
- Responding to the notice promptly is critical to avoid further penalties and interest charges.
- If you cannot pay the full amount, you can request a payment plan or file an appeal if you believe the levy is unjust.
- Failure to respond can result in the seizure of assets, including bank funds and wages.
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