Friday, November 8, 2013

How to Resolve an IRS Tax Levy

IRS tax levies are issued against bank accounts, accounts receivables, wages, and other sources of income when there is a delinquent tax liability.  IRS tax levies are usually issued under a circumstance whereby the client is not current or compliant, misses a deadline, or misses a payment on an installment agreement. When one of our clients is levied by the IRS, usually against a bank account, this can severely damage a businesses ability to continue to operate. If the IRS tax levy is issued against an individual it can severely hinder one's ability to pay bills.

Most recently we had a client who missed a deadline regarding financials.  The IRS sent out a IRS tax levy about 3 to 4 business days following the actual deadline. The client was levied for approximately $3,500.

In order to expedite a release of an IRS tax levy one should always follow these steps below:

- Provide the information asked for
- Provide information concerning what expenses will not clear (especially payroll, bills, rent, mortgage)
- Provide reasonable cause as to why the levy should be released

Once these items are remitted, the IRS will entertain a release. We followed the steps above and were able to work with the Revenue Officer who issued the levy to satisfy all of her requests. We were able to secure a levy release for $3,250 to cover all the necessary payroll expenses. We are now moving forward on the next stage of the case which is resolution.  We were lucky to obtain the release of the IRS tax levy.  Usually when an IRS tax levy is in place it is tough to get it turned around. If the client met the deadline originally issued, the levy would have never taken place. To sum it up, meet all deadlines, stay current with federal tax deposits, estimated tax deposits, returns and do not miss any installment payments once an agreement is reached!!

If you have an IRS tax levy against your wages or bank accounts, feel free to call us at 720-398-6088 or reach us on our website at www.highlandtaxresolution.com.