Notice of Intent to Levy: What to Do if You Don't Owe
When a citizen receives a notice of intent to levy and they feel as if they do not owe the IRS, there are certain actions they must take. If you receive a notice of intent to levy, be sure you gather all of the information available and then take action so you can prevent the IRS from going any further. Even if you do not actually owe the money, you will not be able to stop the IRS from taking it unless you do certain things required by the IRS to dispute the validity of the debt.
You have been given notice
The IRS states when you receive the notice of intent to levy, you have 30 days to communicate with the IRS before further action is taken. If you want to prevent your accounts from being frozen, you will need to file a Collection Due Process Hearing with the Office of Appeals at the IRS. This hearing will allow your situation to be evaluated and reviewed. This is very important for citizens at it will give them the opportunity to have their case heard and stop the process before it begins. There are reasons you can state as the purpose for requesting the hearing.
One reason you can request this hearing is if the debt does not apply to you. Occasionally, the IRS will send out a notice of intent to levy to a taxpayer that actually has not incurred past due tax debt. When that is the case, you want to make sure you have the hearing with the IRS so the liability can be discharged. Even if you do not owe any back taxes, interaction on your part will convince the IRS otherwise. You want to take action immediately so you will not be held liable for debt that is not yours.
Special Circumstances
If you do owe the debt but you are in the middle of a bankruptcy, you can use that to your advantage when you are filing for the Collection Due Process Hearing. It is important that the bankruptcy had already been filed by the time the notice of intent to levy was sent out. You will need to prove the bankruptcy was already in effect. If you file after the fact, you may not be able to discharge the debt. If you have filed for bankruptcy already, you will need to make the IRS aware of that when you request your hearing.
If those two options do not apply to you, you can then look at the statute of limitations. Occasionally the IRS will send out a notice of intent to levy after the statue of limitations for collection the tax has already run out. The time frame will differ according to your individual situation. You will have to evaluate the law and your individual situation in order to find out if the time frame is too great for the levy to occur. As this is a difficult statute, you will want to get help to see if you fall under this provision. If you do and you can prove it, you will be freed from the responsibility of paying the taxes.
Realizing the IRS is very serious
This is a serious situation, and you want to make sure you take the actions necessary in order to protect your assets. If you fail to take action, you could end up being the victim of a bank levy. This is something much easier to prevent than it is to discharge. Therefore, it is crucial to take action prior to the IRS freezing your bank account. You will have a head start in discharging the debt and satisfying the IRS when you take action as soon as you receive the notice. If you get a notice of intent to levy, be sure to begin the process right away to protect the money in your bank account.
For more information about tax attorney, please click here.
When a citizen receives a notice of intent to levy and they feel as if they do not owe the IRS, there are certain actions they must take. If you receive a notice of intent to levy, be sure you gather all of the information available and then take action so you can prevent the IRS from going any further. Even if you do not actually owe the money, you will not be able to stop the IRS from taking it unless you do certain things required by the IRS to dispute the validity of the debt.
You have been given notice
The IRS states when you receive the notice of intent to levy, you have 30 days to communicate with the IRS before further action is taken. If you want to prevent your accounts from being frozen, you will need to file a Collection Due Process Hearing with the Office of Appeals at the IRS. This hearing will allow your situation to be evaluated and reviewed. This is very important for citizens at it will give them the opportunity to have their case heard and stop the process before it begins. There are reasons you can state as the purpose for requesting the hearing.
One reason you can request this hearing is if the debt does not apply to you. Occasionally, the IRS will send out a notice of intent to levy to a taxpayer that actually has not incurred past due tax debt. When that is the case, you want to make sure you have the hearing with the IRS so the liability can be discharged. Even if you do not owe any back taxes, interaction on your part will convince the IRS otherwise. You want to take action immediately so you will not be held liable for debt that is not yours.
Special Circumstances
If you do owe the debt but you are in the middle of a bankruptcy, you can use that to your advantage when you are filing for the Collection Due Process Hearing. It is important that the bankruptcy had already been filed by the time the notice of intent to levy was sent out. You will need to prove the bankruptcy was already in effect. If you file after the fact, you may not be able to discharge the debt. If you have filed for bankruptcy already, you will need to make the IRS aware of that when you request your hearing.
If those two options do not apply to you, you can then look at the statute of limitations. Occasionally the IRS will send out a notice of intent to levy after the statue of limitations for collection the tax has already run out. The time frame will differ according to your individual situation. You will have to evaluate the law and your individual situation in order to find out if the time frame is too great for the levy to occur. As this is a difficult statute, you will want to get help to see if you fall under this provision. If you do and you can prove it, you will be freed from the responsibility of paying the taxes.
Realizing the IRS is very serious
This is a serious situation, and you want to make sure you take the actions necessary in order to protect your assets. If you fail to take action, you could end up being the victim of a bank levy. This is something much easier to prevent than it is to discharge. Therefore, it is crucial to take action prior to the IRS freezing your bank account. You will have a head start in discharging the debt and satisfying the IRS when you take action as soon as you receive the notice. If you get a notice of intent to levy, be sure to begin the process right away to protect the money in your bank account.
For more information about tax attorney, please click here.
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