The IRS Notice of Levy
To make sure that you pay your penalties and tax debt, the IRS utilizes the levy. Your income and your properties may be levied. It is a drastic scenario that can financially incapacitate you, so if you get a Levy Notice, it is best to act fast.
You’ll get a Demand for Payment before you are served with a Levy Notice. Consult a tax attorney to get assistance in preventing a levy and explain with documentation why you weren’t able to pay the taxes and penalties that were asked from you.
The IRS Levy Notice gives you 30 days to request a Collection Due Process hearing with the local IRS Office of Appeals. If counseled to do so by your tax attorney, you must accept this request and prepare for the hearing. If your taxes were paid and the IRS made an error by levying you, you should present evidence in the hearing. When people ignore the IRS Levy Notice, they become prey to unfair levies of property and wages.
There are various situations which will prevent the IRS from pursuing a levy. Making the IRS Office of Appeals aware of these situations is your responsibility. The IRS cannot subject you to a levy if you’ve filed for bankruptcy. Similarly, if you’ve settled the outstanding debt before or quickly following the Levy Notice, you should not be levied. A loophole to stop an IRS levy that numerous people are unaware of is the statute of limitations. The statute of limitations prevents the IRS from collecting taxes that were assessed over ten years ago. If the tax collection period expired before the IRS served your Levy Notice, you are exempt from the levy and from paying the taxes and penalties.
Working out an installment plan to settle unpaid taxes can also be done in the Collection Due Process hearing. You’ll need to work out a payment option with the Office of Appeals if you’re not able to pay the full amount of what you owe the IRS. As opposed to a levy of your bank account or garnishment of your wages, an installment plan is definitely less of a problem financially.
Until the statute of limitations was met, it is released officially, or your debt is paid off, the IRS will pursue the levy. If you file for refund within 30 days after the IRS erroneously levied your bank account, your bank charges will be refunded.
Your IRS problems will just worsen if you ignore a Levy Notice. To safeguard your assets, it is better to seek fast assistance.
Filed under Blog by on Sep 28th, 2009. 
