Thursday, June 27, 2013

Federal Tax Levy?

Have you ever had an Federal tax levy?  Has the IRS frozen your bank accounts, wages, or accounts receivables? Has the State ever done the same?  I am going to explain some preliminary steps to ensure how you can keep a Federal tax levy from happening again, but also work on getting it released!

First and foremost pay attention to any and all IRS notices as they come to you in the mail. By law the IRS has to follow strict procedures before issuing a Federal tax levy. They also have to issue several notices prior to issuing a Federal tax levy notice to your bank, employer, or accounts receivables. If the Federal tax levy has been issued in error, or you feel the IRS did not take the proper steps to inform you they may levy, there are corrective measures that can be taken to fight the levy based on procedure.

Secondly, ensure you have met all IRS deadlines,  have all tax returns filed, as well be sure you have made all Federal Tax Deposits or Estimated Tax Deposits. Don't forget you must also be current with any and all installment obligations if you have a payment plan in place. .  If you are not current or compliant, take the necessary steps to get compliant. Now I know what you are going to ask, "How can I pay my current taxes if the Federal tax levy has my money tied up?" . As if the IRS hasn't heard this before, a lot can be negotiated by way of a release with a promise to get current and compliant, use levied funds to make your back installment payments, or use the funds to make a lump sum payment to the IRS.

Lastly, if you have met all of the requirements, and the Federal tax levy is still creating a hardship, start putting together the following:

- How much did the Federal tax levy capture per source?
- Put together a list of expenses that will not clear if the Federal tax levy remains in place

Once all of the items are put together attempt to negotiate a release of the Federal tax levy based on hardship. It is possible to negotiate a release of the Federal tax levy but there are a lot of requirements that need to be met, and a lot of negotiating to be done. In other words, if you have been levied, the IRS is trying to catch your attention so they can resolve the case. Whether it is by collecting on the IRS balance dues by way of an Federal tax levy, or working with you directly to set up an installment agreement, the IRS wants to collect as much money as quickly as possible.

If you have been levied previously, or have a current Federal or State tax levy against your accounts, please call us today as we can put our experience to work for you! We will gladly assist you in your time of need.  You can reach us at 720-398-6088 or on our website at