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Prompt Action is Necessary When Facing an IRS Levy

Prompt action is necessary when facing an IRS levy

Have you received a notice from the IRS regarding back taxes and an intent to levy your business and/or personal accounts?  Prompt action is necessary when facing an IRS levy.

When a person has a tax debt regarding federal taxes, they could be subject to many different Internal Revenue Service collection tactics. One mechanism the IRS sometimes uses against taxpayers who owe back taxes are levies.

A levy is a property seizure. When the IRS seizes a piece of property through a levy, it uses the seized property to cover back-due taxes owed by the taxpayer the seized property belongs to.

There are all manner of different types of property the IRS can issue levies on. Sometimes, a levy is issued on a taxpayer’s bank accounts. A taxpayer’s wages can be levied. The IRS sometimes levies real estate a person holds. Cars and other personal property can also be levied. And these are just a few examples.  Prompt action is necessary when facing an IRS levy in order to protect access to your accounts and assets.

The property losses a tax levy can cause for a taxpayer can be substantial. Thus, receiving a tax levy notice from the IRS may cause a person’s heart to sink.

A person who has received an IRS CP504 Notice of Intent to Levy may think that they are simply doomed to losing the property the notice regards. However, there may be actions a person in such a situation can take to keep their property. For example, if the loss of the property would cause them an immediate economic hardship, they may be able to convince the IRS to release the levy. Also, a taxpayer could challenge a levy through requesting a Collection Due Process hearing.

An important thing to remember is that some of the actions available to a person who is facing an IRS levy in relation to back-due taxes have fairly tight time windows associated with them. For example, the deadline for requesting a Collection Due Process hearing in relation to an IRS levy is 30 days after the date of the levy notice.

Have you received a CP504 Notice of Intent to Levy from the IRS? Prompt action is necessary when facing an IRS levy.  We invite you to learn more about the California, IRS and international tax services, as well as the legal, accounting and business consulting services of Allen Barron.  Protect your interests and contact us or call today to schedule a free consultation at 866-631-3470.