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 serious and should not be ignored. If you believe the levy is incorrect, you can take steps to have it removed. Start by asking an IRS manager to review your case. You can also request a Collection Due Process hearing with the Office of Appeals by filing a request with the office listed on your notice. Make sure to file your request by the deadline shown on your notice.
During the hearing, you can discuss issues such as:
- You paid all taxes owed before the IRS filed the lien.
- The IRS assessed the tax while you were in bankruptcy, which should have prevented collection.
- The IRS made a procedural error in the assessment.
- The statute of limitations expired before the IRS filed the lien.
- You did not have a chance to dispute the assessed liability.
- You want to explore collection options.
- You wish to make spousal defenses.
After the hearing, the IRS Office of Appeals will issue a determination. This could either support the continued existence of the tax lien or determine that it should be released or withdrawn. If you disagree with the determination, you have 30 days from the date of the decision to request judicial review in a proper court. It may also be beneficial to consult a local tax attorney who can help review your documents and situation.
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.