Levy or Seizure Release
The IRS has sent you a certified letter
stating it intends to levy your wages or bank account or perhaps another
source of funds. What does that mean? Can they really do
that? Could you get fired? What will the bank or your payroll
department do?
Levies are serious business and not to be
fooled with.
Yes, the IRS can and does issue threats to
levy, and actual levies. This is supposed to be a last resort by the
IRS to collect taxes but is far too often used as a FIRST RESOURCE by IRS
Personnel to intimidate you and force you to comply.
Here is how it works. Generally, the
IRS identifies a debt that it thinks you owe. After sending a couple of
notices to the last address on
file, the IRS is free to take the money from anyone owing you
money, or
holding your money. This is really an ugly process. You do not
have to actually receive the notice. The IRS merely has to mail
it. After mailing the "Final Notice of Intent to Levy", the
IRS waits at least 30 days and then uses records in it's databanks as well as
information from states, credit bureau reports and a variety of other
sources to find your employer and or bank, credit union, etc.
Now you have a serious situation on
your hands. Your money is tied up so it's hard to pay for
professional help to solve the problem.
You call the IRS in
desperation, they tell you they "never release levies" an
outright lie. This is a common complaint from taxpayers, and I have
encountered that answer myself. Of course I know it's a lie and how
to handle it. But to the taxpayer, this is devastating. Often,
the IRS employee at the other end of the phone plays God and loves the
part.
The uninformed taxpayer takes the employee
at their word and agrees to whatever they demand to release, or more likely,
partially release the levy. Only later do you find out you have
agreed to something you did not have to and that is beyond your means to
pay. Bigger problems now lie ahead.
There is one primary rule with the
IRS. That one rule is if the taxpayer is out of compliance (that
means hasn't filed tax returns, even just one) they won't release the levy
until the return is filed. However, if the taxpayer has received a
"Notice of Intent to Levy" the taxpayer will generally be
given time to file the return and avoid the levy process. It is
important to be proactive, guiding the IRS to a mutually acceptable
result. Waiting for the IRS to take action places the IRS in control and
will usually result in a less than client beneficial solution.
Of course, the best course of action is to
avoid the levy. Get professional help before it goes that far.
If you have a levy, it will take more time (read as more money) to get rid
of it and help you. Generally, we can prevent levies from happening
by being proactive with your case, staying in touch with the appropriate
authorities and getting you the relief you need before the situation gets
worse.
Please tell me about your problem
here for immediate help
Have you been served with a notice
of intent to levy? Click HERE for Info.
Concerned with a levy
against your business? Click
HERE
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