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