An IRS levy is the legal seizure of a taxpayer’s property to satisfy his or her tax debt. The IRS may garnish wages, seize and sell real and personal property, and take money in any bank or financial account under the legal authority of a levy, which is given to the IRS in I.R.C. § 6331. The IRS may levy any property owned by a taxpayer, or on which there is a Federal tax lien, unless the property is exempt from levy.
The IRS issues a Final Notice of Intent to Levy and Notice of Your Right to A Hearing, It is important that taxpayers comply with the levy. The assistance of an experienced tax professonal is essential in this situation. The IRS usually levies only after the following three requirements are met:
- The IRS assessed the tax and sent a Notice and Demand for Payment;
- The taxpayer neglected or refused to pay the tax; and
- The IRS sent Final Notice of Intent to Levy and Notice of Your Right to A Hearing at least 30 days prior to the levy. This notice may be given to a taxpayer in person, left at his or her home or usual place of business, or sent to a last known address by certified or registered mail, return receipt requested.
Again it is vital to contact the IRS immediately with a tax professional at your side at all times when a Notice is received. Wages are a vital part of a taxpayer’s livelihood providing income at regular intervals, therefore some degree of financial consistency and stability. When this steady stream of income is affected, it may have dire economic consequences for a taxpayer and his or her family. The levy may be released if it’s causing an immediate economic hardship. Of course, a levy release does not mean the tax debt is forgiven. The taxpayer will be required to make some type of payment arrangement to satisfy the debt in the near future.
If you live in the New York or the Tri-State area and have any questions about any tax-related issues, call THE TAX EXPERTS at the Thorgood Law Firm www.thorgoodlaw.com. For a FREE consultation call 212-490-0704.
