IRS Levies Explained by Instant Tax Solutions Reviews Team

The Instant Tax Solutions Reviews Team chatted recently with Oceans 2003 about the Internal Revenue Service and how they can, and will, seize assets.

Oceans 2003: As always, thank you for speaking with us today.

Instant Tax Solutions Reviews Team: It is truly our pleasure.

Oceans 2003: First, can you tell our readers about the Instant Tax Solutions Reviews Team?

Instant Tax Solutions Reviews Team: Certainly. The Instant Tax Solutions Reviews Team studies and reports on IRS policy and procedure as part of our commitment to educating our clients.

Oceans 2003: Very interesting. Shall we begin? Can you tell us, what exactly is a levy?

Instant Tax Solutions Reviews Team: A levy is when property is legally seized to satisfy the debt, such as with overdue taxes.

Oceans 2003: The IRS may take personal property to settle debt?

Instant Tax Solutions Reviews Team: Yes, that’s correct. Taxpayers that failed to pay or to make payment arrangements may be subject to an IRS levy.

Oceans 2003: What kind of property can they take?

Instant Tax Solutions Reviews Team: Any personal property, whether or not it is in the taxpayer’s possession.

Oceans 2003: When you say personal property, are you referring to vehicles, jewelry, etc.?

Instant Tax Solutions Reviews Team: Yes, but the IRS may also seize homes, wages, and bank accounts.

Oceans 2003: So this would be considered a wage garnishment correct?

Instant Tax Solutions Reviews Team: Yes, the IRS is well-known for wage garnishments, but people should understand that that is a last resort.

Oceans 2003: What happens before a levy?

Instant Tax Solutions Reviews Team: The IRS sends a Notice and Demand for Payment that the taxpayer must refuse. They also send a final written notice of their intent at least 30 days prior to the event.

Oceans 2003: Can you stop an IRS levy before it happens?

Instant Tax Solutions Reviews Team: A taxpayer must either pay the debt or arrange a payment plan to avoid wage garnishment, and other asset seizure.

Oceans 2003: We have heard that taxpayers are allowed to request an IRS case manager. Is this true?

Instant Tax Solutions Reviews Team: Yes, absolutely. The IRS will assign a manager to the taxpayer’s  case who can speak with the taxpayer about a variety of issues.

Oceans 2003: Such as?

Instant Tax Solutions Reviews Team: Well, for one, the case manager will need to be informed of any payments made prior to receiving the notice.

Oceans 2003: Are there ever times when the IRS cannot seize assets?

Instant Tax Solutions Reviews Team: Yes, there are. A taxpayer in bankruptcy may not have their assets seized because of an automatic stay during bankruptcy procedure. The IRS may not collect if the amount of the legal time frame for collection has passed.

Oceans 2003: Going back to wage garnishment, when will the IRS stop taking funds out of the payroll check?

Instant Tax Solutions Reviews Team: This can happen when the tax debt is paid in full or the time expires for collecting the debt.

Oceans 2003: And what about personal bank accounts?

Instant Tax Solutions Reviews Team: The IRS can levy a bank account. They can force the bank to hold all deposits for a period of 21 days to allow the taxpayer time to resolve any account ownership issues.

Oceans 2003: What happens after the three-week mark?

Instant Tax Solutions Reviews Team: The bank holding the account must remit money, including interest – if it is an interest-bearing account – to the IRS.

Oceans 2003: How can a taxpayer contact the IRS regarding questions?

Instant Tax Solutions Reviews Team: Taxpayers are encouraged to contact the IRS employee who is named on the Notice of Levy.

Oceans 2003: Thank you for the information; that is all the time we have for today.

Instant Tax Solutions Reviews Team: Thank you for allowing us to speak.