If you owe back taxes, the IRS can use a levy in order to seize your property in order to satisfy a tax related debt. These do not require permission from the courts, and may be carried out by any means necessary. Levies may result in wage garnishment, seizure of money from financial accounts, and the seize and sale of real estate, vehicles, and other personal items. Finding out that you are being levied by the IRS can be emotionally and physically stressful, but it is crucial to act immediately if you hope to have a levy lifted.
When you receive a notice from the IRS, it is important to read it in full. If you are unsure of the nature of a notice, an accountant with LBS Tax can aid you in identification and help you to determine your next course of action.
- Small business owners – Receive 5 notices in total. These are comprised of 4 standard notices and 1 final notice.
- Individuals – Receive 4 notices in total. These are comprised of 3 standard notices and 1 final notice.
Your final levy notice is your last chance to act.
The final warning given by the IRS regarding a tax levy will be a bill titled “Final Notice of Intent to Levy and Notice of Your Right to A Hearing.” This will have a date on it, and you will have exactly 30 days from the Final Notice of Intent to Levy to file a Form 12153 and have it received by the IRS. You do not have 30 days to file. The IRS must receive your Form 12153 within 30 days of the specified date on your final notice.
Prevent a Levy with a Request for a Collection Due Process
By filing a Request for a Collection Due Process or Equivalent Hearing (Form 12153) you can preserve your right to go to court. You must make sure to check box 7 on the form and there must be a reason supplied for your disagreeing with the levy.
An Enrolled Agent can represent you before the IRS.
Our accountants can look at your finances and identify your best options. Our company president, Sharon A. Lewis, is also an Enrolled Agent. She can represent you before the IRS. After a request for a collection due process you will have the time to discuss options with the Collection office that sent your notice. If a compromise can be reached or the levy has been assigned in error, a hearing may not be required.
The Collection Appeals Program is available even after a seizure.
If a hearing is required it will go through the Office of Appeals. This may occur over the phone, via physical or electronic letter, or in person. An Enrolled Agent can represent you during your Appeals hearing. The collection appeals program is used for a number of reasons including agreement terminations, rejections, and modifications. It does not guarantee the IRS will act according to the wishes of the individual, but does provide the opportunity to appeal either before or after a notice, levy, or seizure.
An accountant can make all the difference.
Depending on where you are in the levy process, certain options will be available to you. We know every step of this process including obligations the IRS has to you and when and how you can respond. Taking advantage of every step in the process is the best way to prevent a levy, and ensure you have the greatest opportunity to prove it was wrongfully made or present a payment alternative that is more favorable for you than seizure of your assets.
If you’ve received a levy notification or your property has already been seized, call (480) 664-1249 or Contact Us today. You have options, and we can help you put them to use.