Full question:
We have received a notice of a 'Levy' being placed against us by the IRS for back taxes. We truly DO NOT owe these taxes. We have been calling and sending the IRS numerous documents and materials for months that prove this fact. At the conclusion of these phone calls, the IRS representative says - 'Yes, you are correct, you do not owe these taxes' - 'I will make a notation in your file.' This was followed invariably weeks later by more official letters from the IRS asking when we were going to pay the taxes. Two questions:1) How serious is a levy? 2) Is there any way to get the IRS to listen to us and really get this expunged - the total is now up to $6600 and growing.
- Category: Taxes
- Date:
- State: Pennsylvania
Answer:
A federal tax levy is not something to be ignored and if incorrect, steps should be taken to have it removed. You may ask an IRS manager to review your case, and you may request a Collection Due Process hearing with the Office of Appeals by filing a request for a hearing with the office listed on your notice. You must file your request by the date shown on your notice. Some of the issues you may discuss include:
-You paid all you owed before the IRS filed the lien,
-The IRS assessed the tax and filed the lien when you were in bankruptcy, and subject to the automatic stay during bankruptcy,
-The IRS made a procedural error in an assessment,
-The time to collect the tax (called the statute of limitations) expired before the IRS filed the lien,
-You did not have an opportunity to dispute the assessed liability,
-You wish to discuss the collection options, or
-You wish to make spousal defenses.
At the conclusion of your Collection Due Process hearing, the IRS Office of Appeals will issue a determination. That determination may support the continued existence of the filed federal tax lien or it may determine that the lien should be released or withdrawn. If you disagree with Appeal's determination, there is a 30-day period starting with the date of determination, in which you may request judicial review in a court of proper jurisdiction.
I suggest contacting a local tax attorney who can review all the facts and documents involved.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
