The best way to avoid an IRS levy is to stop it before it starts. You’ll get several notices from the IRS before they can levy your assets. The notice should absolutely get your attention is a Final Notice of Intent to Levy and Notice of Your Right to Hearing, also known as the Collection Due Process (CDP) Notice.
When you get the CDP notice, your time is running out to prevent the levy. Contact a tax attorney immediately to come up with a plan to avoid the seizure of your property.
Pre-Levy Prevention Strategies
You have 30 days to request a CDP hearing. The IRS can’t levy your assets during this 30-day window or during the CDP process.
You can negotiate an installment agreement, request currently not collectible status, or even dispute the tax liability during this window. But if you don’t request the CDP hearing, it becomes much harder to delay or avoid the levy.
Some levies have an additional waiting period. For example, there is a 21-day waiting period once the bank receives the levy notice before they will send the money to the IRS.
No matter how much you owe the IRS or what your financial situation is, there is a tax resolution option available that is much better than having your assets levied. You just need to know what the right strategy is and how to execute it for your maximum benefit.
Return of Levied Assets
It’s much harder to get levied assets returned than it is to avoid the levy before it takes place. The IRS generally only returns levied assets in the following circumstances:
- The levy was improper or premature. For example, the levy was made before you were given your 30 days to request a CDP hearing.
- IRS procedures weren’t followed during the levy process.
- Returning the seized property will help with collection of the debt. For example, if the IRS seized property you need to earn income or run your business, returning the levied property could help you pay back your debt faster.
- You enter into an installment agreement to pay back the debt, unless the agreement states that the levied property won’t be returned.
You may have a limited time to seek a return of your seized property. Contact a tax attorney for assistance as soon as possible after the levy.
Get help with IRS levies by calling The Gartzman Law Firm at (770) 939-7710. We can help you avoid IRS collection actions and find a creative solution to your tax problems.