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By Michael S. Anderson of Anderson Tax Law logo for Arizona tax attorney Michael S. Anderson P.C.
  • IRS Levy Help – 6 ways to argue for the release of a levy or return of property siezed

    IRS LEVY HELP

    When the IRS decides it will take or “levy”  a bank account, paycheck or an asset, it will issue a notice of levy to the bank, employer or it will simply seize the asset in person.  Once this IRS levy notice is received by the bank or thenumbers6 employer, it can be difficult to remove. If money has been received by the IRS via the bank levy or asset seizure, it more than just difficult to get it returned.

    When you receive a copy of that levy notice, it should contain the name and number of the IRS officer responsible for issuing it or the name, address and phone number of the automated collection service with the IRS.  You can call the number directly on the notice.  When the officer or the employee at acs answers the phone, you can simply ask for the levy to be released and/or any assets to be returned.

    Of course they will probably say no.  It will be your job to convince the officer to say yes.

    There are certain conditions under which the IRS will return assets that have been physically seized and they are:

    1. The IRS believes that the levy will create a financial hardship on you – i.e. the money in the bank account was from your paycheck and without rent and food won’t be paid for the month; or the car is necessary for work and has little value.
    2. You arrange a payment plan with the IRS.
    3. The statute of limitations on collection has expired – i.e. ten years have passed since the date of assessment
    4. The IRS agrees that the release will facilitate the collection of the tax debt – i.e. returning the tractor will help you plow the field to grow the potatoes for sale at market, to pay the IRS tax debt etc.
    5. The tax debt was paid in full, settled via an offer in compromise or discharged in a bankruptcy.
    6. You appeal.  You can appeal an IRS levy or other collection action. Do this by asking for the manager.  When the manager says no, fill out and fax or mail in a completed form 9423 within two days of speaking to the manager.  That appeal request must usually be decided within 5 days.