IRS Form 15104 Guide: Status of the Taxpayer Levy Notice

1. Introduction: What is Form 15104?

IRS Form 15104, officially titled Status of the Taxpayer Levy, is an administrative response document published by the Internal Revenue Service (IRS). It is governed by the Small Business/Self-Employed (SB/SE) Collection Division of the IRS under the federal tax levy enforcement provisions of Internal Revenue Code (IRC) Section 6331 and Section 6332.

This form is not a return filed by individual taxpayers. Instead, it is sent to third-party garnishees—most commonly employers, payroll departments, banks, or accounts payable teams—enclosed with IRS Notice LP59. When the IRS previously served a Notice of Levy (such as Form 668-W to garnish an employee’s wages or Form 668-A to seize accounts receivable) and received no response or payments, Notice LP59 demands an immediate accounting. Form 15104 provides the employer or third party with the official mechanism to explain why funds have not been sent.

2. Purpose of the Form: Why Does Form 15104 Exist?

Under federal law, the IRS possesses sweeping authority to collect delinquent taxes by seizing property, garnishing wages, and levying bank accounts held by third parties. When an employer or financial institution receives a federal levy notice, they are legally required to comply by withholding and remitting the debtor’s funds.

However, practical business situations frequently prevent third parties from turning over funds—such as when an employee was recently terminated, an independent contractor has already been paid in full, or the employer already mailed the required payment. Form 15104 exists to resolve these situations and protect third-party businesses:

• Explaining Non-Remittance: It allows an employer or third party to officially notify the IRS that the taxpayer is no longer employed, that no money is owed to them, or that payments were already mailed.
• Preventing Personal Liability for the Employer: Under federal statute, an employer that ignores an IRS levy can be held personally liable for the employee’s tax debt plus a 50% penalty. Form 15104 provides the verified paper trail needed to establish “reasonable cause” and prevent penalties.
• Updating IRS Collection Records: It provides the IRS with crucial locating information, such as the former employee’s last known home address, telephone number, and new employer if known, allowing the IRS to redirect collection actions away from your business.

3. Who Needs to File This Form?

Form 15104 is an inquiry-driven document used by third-party garnishees who received an IRS non-compliance notice. You need to complete and return Form 15104 if:

• Your business, payroll service, or accounts payable department received IRS Notice LP59 regarding an employee or vendor.
• The taxpayer named on the notice is no longer employed by your company.
• Your business does not owe the taxpayer any money (e.g., an independent contractor with zero outstanding invoices, or an employee on indefinite unpaid leave).
• You already mailed the required levy payment to the IRS, but the payment has not yet been processed or reflected on the taxpayer’s account.
• You are a financial institution served with Notice LP59 for an individual who holds no active accounts or deposits with your bank.

4. Who Is Exempt / Not Required to File?

Many businesses and taxpayers will never need to handle Form 15104. You are exempt or not required to submit it under the following conditions:

• Employers Actively Remitting Levy Payments: If the employee still works for you and you are actively withholding and remitting their wages to the IRS using Part 3 of Form 668-W, you remit the money instead of Form 15104.
• The Taxpayer Themselves: The delinquent taxpayer or employee does not complete Form 15104; it is strictly an administrative response for the third-party employer or bank.
• Employers Who Received a Release of Levy: If the IRS issued a formal Release of Levy (Form 668-D) cancelling the garnishment, the levy is closed and Form 15104 is not required.
• Employers Who Never Received Notice LP59: If your company has not received a formal LP59 follow-up notice, you do not use this form.

5. When to File: Deadlines and Frequency

Form 15104 is an event-based response document with an urgent statutory deadline. It is not an annual recurring filing.

The response deadline is printed directly on your Notice LP59, which is strictly 30 calendar days from the date printed on the notice. Meeting this 30-day deadline is critical: if your business ignores Notice LP59 and fails to return Form 15104, the IRS will assume your business is willfully refusing to surrender property, which triggers immediate statutory enforcement actions against your company. If you prefer to provide the information by telephone rather than mail, you must call the dedicated IRS contact number listed on your LP59 notice before the 30-day window expires.

6. Where and How to File

Form 15104 is a paper-based or telephone-based response that cannot be filed through commercial payroll or tax software. Employers have two approved methods to respond:

• Submission by Mail (Recommended): Complete Form 15104, detach the notice stub from the bottom of your Notice LP59, and mail both documents in the return envelope provided with your notice.
• Mailing Address: If the return envelope is missing, mail Form 15104 and the LP59 notice stub to the designated IRS address as per instructions printed directly on your Notice LP59 detachable stub. Always send via certified mail with return receipt requested to prove delivery.
• Response by Telephone: The IRS permits employers to provide the required status update by telephone. You can call the direct phone number listed on the attached LP59 letter to report the employee’s status to an IRS representative. Always record the date, time, and agent’s badge number.

7. Step-by-Step Instructions to Fill Form 15104

Form 15104 is a straightforward, single-page response document. It captures identifying data for both the employer and taxpayer and provides three clear status checkboxes. The table below outlines each section of the form.

Section	Item Name	Required Information & Instructions
Header	IRS Office Details	Name of the specific IRS office that issued the LP59 correspondence.
Header	Employer Information	Legal employer business name and nine-digit Employer Identification Number (EIN).
Header	Taxpayer Information	Delinquent taxpayer’s full legal name and nine-digit Social Security Number (SSN).
Status 1	Amount Sent to IRS	Date mailed, exact dollar amount mailed, and physical IRS address payment was sent to.
Status 2	No Money Owed	Detailed written explanation stating why the business owes zero funds to the taxpayer.
Status 3	No Longer Employed	Last known address, telephone number, termination date, and new employer (if known).

Part 1: Header Information

Look at the top of your Notice LP59 to identify the specific IRS office location handling the case. Enter your complete legal business name and your nine-digit Employer Identification Number (EIN). In the taxpayer block, enter the employee’s or vendor’s full legal name and Social Security Number (SSN) exactly as shown on the original levy.

Part 2: Select ONE Taxpayer Levy Status

You must review your payroll and accounting ledgers and select the single status option that accurately reflects your situation:

• Option 1: “We sent the amount to you.” Check this box if you already deducted and remitted the required funds. You must enter the exact calendar date the payment was mailed, the dollar amount remitted, and the IRS mailing address or service center where the check was sent.
• Option 2: “We don’t owe this taxpayer any money.” Check this box if the individual is an active worker or contractor but you have no funds to turn over. You must provide a concise factual explanation (e.g., “Worker is an independent contractor with no outstanding invoices or pending disbursements,” or “Employee is on an extended unpaid medical leave with zero net earnings”).
• Option 3: “We no longer employ this taxpayer.” Check this box if the worker resigned, retired, or was terminated. You must provide the taxpayer’s last known physical home address, their last known telephone number, their current employer (if known), and any additional information that can assist the IRS in locating the individual.

8. Required Documents and Information Needed Before Filling

Before preparing Form 15104, assemble the following payroll and human resources records:

• The original IRS Notice LP59 (including the bottom detachable notice stub).
• A copy of the original Notice of Levy (Form 668-W or Form 668-A) previously received for the employee.
• Personnel records documenting the employee’s termination date, resignation letter, or final paycheck date.
• The employee’s emergency contact sheet or personnel file showing their last known residential address and phone number.
• Accounting payment confirmation, canceled check copies, or certified mail tracking receipts if levy funds were already remitted.

9. Common Mistakes to Avoid

Mishandling an IRS levy notice can expose an employer to severe legal liability. Watch out for these frequent mistakes:

• Ignoring Notice LP59 Because the Employee Left: Assuming that you do not need to respond because a worker was terminated months ago is the most dangerous error. The IRS has no way of knowing the employee left until you submit Form 15104 or call them. Silence is treated as refusal to comply.
• Giving the Notice to the Employee to Handle: A federal levy is a legal order served on the employer, not the employee. While you must give Part 2 of the original levy to the employee, Notice LP59 and Form 15104 must be completed and submitted directly by the employer.
• Mailing Form 15104 Without the LP59 Stub: Failing to include the detachable notice stub from the bottom of Notice LP59 delays automated document scanning at IRS service centers.
• Providing Vague Explanations on Option 2: Writing “not applicable” or leaving the explanation blank under Option 2 will cause the IRS to reject the response and continue enforcement actions.
• Missing the 30-Day Response Window: Failing to respond within 30 days allows the IRS to initiate statutory penalty proceedings against your business.

10. Penalties for Non-Filing or Errors

Failing to respond to Notice LP59 or ignoring Form 15104 carries catastrophic statutory penalties for third-party businesses under federal law:

• Personal Liability for the Tax Debt (IRC Section 6332(d)(1)): If an employer refuses or fails to surrender property subject to levy upon demand, the employer becomes personally liable to the United States for an amount equal to the value of the property not surrendered, up to the full amount of the employee’s tax debt.
• Mandatory 50% Penalty (IRC Section 6332(d)(2)): If the IRS determines that the employer’s failure to respond was without reasonable cause, the IRS can assess an additional penalty equal to 50% of the amount recoverable. This penalty is paid out of the business’s own pocket and is not credited toward the employee’s tax liability.
• Corporate Levies and Summonses: Uncooperative employers face administrative summonses, formal depositions by IRS revenue officers, and potential federal tax levies placed directly on the employer’s business bank accounts to collect the penalty.

11. Related Forms or Schedules

Form 15104 operates within a specialized group of IRS collection and levy enforcement documents:

• Notice LP59: Notice of Levy Status Inquiry (the warning notice that encloses Form 15104).
• Form 668-W: Notice of Levy on Wages, Salary, and Other Income (the standard continuous wage garnishment form).
• Form 668-A: Notice of Levy (used to seize bank accounts, escrow funds, and accounts receivable).
• Form 668-D: Release of Levy / Release of Property from Levy (issued when the debt is resolved or garnishment is lifted).
• Form 8519: Taxpayer Copy of Notice of Levy.
• Form 2848: Power of Attorney and Declaration of Representative.

12. Frequently Asked Questions (FAQs)

1. What is IRS Notice LP59?

Notice LP59 is a formal follow-up notice sent to an employer, bank, or third party stating that the IRS previously issued a Notice of Levy but has received no response or payments. It gives the third party 30 days to pay the required amount or explain why no money is owed using Form 15104.

2. Can my business really be forced to pay an employee’s tax debt?

Yes. Under Internal Revenue Code Section 6332(d), if an employer owes wages to an employee and ignores a federal levy, the employer can be held personally liable for the full amount that should have been withheld, plus an additional 50% penalty for noncompliance.

3. Can I respond to Notice LP59 by phone instead of mailing Form 15104?

Yes. The IRS instructions explicitly state that if you prefer to give the information by phone, you can call the telephone number listed on your LP59 notice within 30 days to provide the employee’s status directly to an IRS representative.

4. What if the employee still works here, but their earnings are completely exempt?

When you receive a wage levy, you calculate the employee’s exempt amount using the Statement of Exemptions on Form 668-W. If the employee’s take-home pay is less than the statutory exempt amount, you owe zero dollars to the IRS. You should check Option 2 on Form 15104 and explain that net wages do not exceed the statutory exemption threshold.

5. What if the employee was fired or quit before Notice LP59 arrived?

You should immediately check Option 3 on Form 15104 (“We no longer employ this taxpayer”), enter the former employee’s last known address and phone number from your HR files, attach the LP59 notice stub, and mail it to the IRS. This closes the inquiry against your business.

6. Does submitting Form 15104 legally release the original levy?

Form 15104 explains the current status to the IRS, but a continuous wage levy is officially closed only when the IRS issues Form 668-D (Release of Levy) or updates its master files confirming the employee has separated from your company.

13. Conclusion: Key Takeaways

IRS Form 15104 is an essential protective tool for employers, payroll managers, and third-party garnishees. When served with Notice LP59, completing Form 15104 provides the IRS with immediate verification that an employee was terminated, that funds were already remitted, or that no money is currently owed.

Because ignoring an IRS levy notice exposes a business to personal liability for the underlying tax debt plus an aggressive 50% statutory penalty, employers should respond within the strict 30-day window printed on Notice LP59, compile accurate payroll records, and submit Form 15104 via certified mail or by phone immediately.