Levy Releases

IRS LEVY:

  • The seizure of a taxpayer’s assets.
  • The levy taxes all but the exempt amount, very little.

TO RELEASE A LEVY:

  • File Bankruptcy (not always the best option)
  • Develop a plan to deal with the IRS.
  • Basic grounds are that continuing the levy will result in an “undue hardship” for the client.
  • Make an effort to get the returns filed;
  • Gather Information –
  • Copy of the levy;
  • Name, address, phone and fax of employer;
  • Copy of return for the last tax due;
  • Completed form 433A.
  • Calculate whether the tax is uncollectible.
  • For levy releases, hope the excess income is negative.
  • If the excess is positive, you may have to pay that amount as an alstallment agreement.
  • Contact the IRS and beg. (re: prepared to provide information)
  • They might ask for tax returns; (unfiled returns may kill the chance of a levy release).
  • The representative is reluctant to depart from financial standards. They will want excess income to be paid as an IA.
  • Keep a note of the representative’s name and ID num
  • If an agreement is released, ask the person to fax a copy of the levy release to your client’s employer.
  • Be prepared with an alternative to the levy. Maybe seek not collectible (suspense) status, an OIC, and IA.

IF THE REQUEST IS REFUSED:

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