An IRS levy is where they enforce collection of tax debts through seizure of your property, wage garnishments and direct transfer of funds from the debtor's bank account. If an employer gets a notice for wage garnishment for an employee, then they have to withhold the specified percentage (usually 30-75 percent) of the employee's wages and forward it to the IRS. Banks must forward the entire amount in an account to the IRS within 21 days of being notified.
Do you have additional legal questions regarding an IRS levy? Our taxation law attorneys are here to help. Contact a taxation lawyer near you today to get the answers and information that you are seeking regarding IRS levy laws and issues.
Release from an IRS levy is possible via one of the below mechanisms:
If an IRS levy has been ordered, it can be released if the resultant financial hardship is acute and concrete evidence is provided. Similarly, a CDP (Collection Due Process) hearing can be requested from the IRS Office of Appeals to provide valid reasons for disagreement and preserve your right to go to court against the impending levy. You have to file for this hearing within 30 days of getting the "intent to levy" notice. If you file after the 30-day deadline, you can still ask for an Appeals hearing, but you will not be able to take the IRS to court.
You may also ask for an installment agreement. You can file for Chapter 7 or Chapter 13 bankruptcy, which can discharge your tax debt under the right conditions. At the very least, it will delay the collection process and give you time to work out an alternate solution.
Would you like to learn more about an IRS levy? Are you currently facing any problems regarding your tax filing or tax return? Our taxation lawyers are here to help you during your crisis. Contact a taxation law attorney in your area as soon as possible for more information about IRS levy laws.
Did you know?
You have 30 days after an IRS levy hearing to file a court case.
You get 30 days to file for a CDP hearing, and 30 days after the hearing to file suit to contest the levy.