A levy is the legal seizure of your property. The IRS will levy to satisfy a tax debt. Levies and liens are different. A lien is a claim used as security for the tax debt. An IRS lien will encumber your current property and any property you acquire in the future. A levy action takes your property to satisfy the tax debt.
If you do not pay your taxes or setup a payment arrangement, the IRS may seize and sell your property. The IRS can levy any type of real or personal property that you own or have an interest in. For instance,
The IRS will levy, but levies are a form of enforced collections the IRS must meet three requirements to issue a levy:
You still have rights. Just because the IRS has mailed you a Letter 1058, this does not mean that you must accept a levy on your property.
You can ask an IRS manager to review your case, or you can request a Collection Due Process hearing. The majority of taxpayers that find themselves in this position should not attempt to handle these tasks by themselves. Are you willing to bet your property or income that you can resolve this problem with the IRS?
A Collections Due Process Hearing is a formal request by the taxpayer to avoid enforced collections. A Request for a Collections Due Process Hearing must filed, within 30 days of the date on your Final Notice of Intent to Levy. Some of the issues you may discuss include:
The Collections Due Process Hearing is your chance to stop the IRS’s collections efforts. Many times a taxpayer just wants to setup an installment agreement, or the taxpayer needs to evaluate if they can repay any money. Do you think you want your first Collections Due Process Hearing to be handled by yourself? Hire a professional that has been in many Collection Due Process Hearings.
After the hearing, the IRS Office of Appeals will issue a determination.
Your rights don’t stop at this point. After the IRS Office of Appeals issues a determination, you will have 30 days to bring a suit to contest the determination.
If the IRS levies or seizes your property, you don’t have much time. Contact us immediately! We cannot get your property back once the IRS takes it.
If the IRS levies your wages, salary, federal payments or state refunds , the levy will end when:
If you do nothing, the IRS will take your wages until, the debt is paid in full or the statute of collections expires. The IRS has the power to take your wages until they are paid in full. How long can you survive without a paycheck? Contact us immediately! You should not waste any time before you hire us.
If the IRS levies your bank account, your bank must hold funds you have on deposit, up to the amount you owe, for 21 days. This holding period allows us time to resolve any issues and get you your money back. After 21 days, the bank must send the money plus interest, if it applies, to the IRS. We cannot get you your money back once the IRS has taken it.
In 2-5 business days we can obtain a release of levy and we can get your money put back into your bank account. What we cannot do is, we cannot get your money back after 21 days