If a taxpayer does not pay his or her federal income taxes (or make arrangements to settle his or her debt), the IRS may levy or seize and sell the taxpayer’s property. They will usually seize property only after the following have occurred:
- IRS sent a bill after assessing balance due for a specific tax period
- Taxpayer ignored notices and refused to pay bill in full
- A “Final Notice of Intent to Levy” and “Notice of Your Right to a Hearing” at least 30 days before the seizure was sent to the Taxpayer.
- IRS needs only to send notice to Taxpayer’s last recorded address of most recent filed tax return
The IRS has exceptions to the 30 day notice of intent to levy:
- Tax collection is in jeopardy (IRS is running out of time to collect)
- Levy is served to “offset” state tax refund
- Levy is served on a Taxpayer who is a federal contractor
- A Disqualified Employment Tax Levy (DETL) is served. A Taxpayer requested a Collection Due Process hearing on employment taxes for periods within the past 2 years
If the IRS serves a levy under one of the above exceptions, they will send the taxpayer a letter explaining the seizure and the taxpayer’s appeal rights after the levy is issued.
FREE Tax Relief consultation call us 1-866-226-6102. https://dwktaxgroup.com
Property subject to levy:
Wages, Salary & Commissions – Levy is served once and will remain continuous until the tax debt is paid in full or arrangements are made with the IRS to resolve the tax problem
Bank accounts – Bank levy is served once, however it is not continuous. Monies levied on an account available on the day of the levy is forwarded to the IRS in 21 days. The Taxpayer has the 21 day period to resolve and get the funds returned to the Taxpayer.
Federal payments – IRS may levy 15% of Social Security benefits via the Federal Payment Levy Program (up to 100% if vendor for services and goods sold or leased to the federal government). The levy served is continuous.
Car, house or other property – If the IRS seizes the individual’s house or other property, they will sell the individuals interest in the property and apply the proceeds to the tax debt. Once property is processed for sale (Public notice of sale through newspapers, community announcements, etc.) the IRS will wait for 10 days before selling the taxpayer’s property. Once the sale is conducted any funds exceeding the tax debt due the Taxpayer will receive a refund. Oh boy!
Before we get to this point, call 1 – 8 6 6 – 2 2 6 – 6 1 0 2 for a free, anonymous, privacy conscious tax firm. Tax attorneys and Enrolled Agents are available to discuss any situation you may be experiencing. https://dwktaxgroup.com
We will only take your case if there is a benefit to the taxpayer enlisting our help.
Thank you for your time… DWK Tax Group Inc.
FREE Tax Relief consultation call us 1-866-226-6102. https://dwktaxgroup.com