As much as the IRS hates to admit it, they make mistakes too. Similarly, as much as we hate to acknowledge it, most IRS agents can pass for human…as long as it is not tax season. With this in mind, it should not surprise you that people may be “accidentally” unjustly levied by the IRS.
If this happens to you, there are options. You can ask to have your case reviewed, request a Collection Due Process Hearing with the Office of Appeals (within 30 days of the date of your levy notification) and you may be able to get an IRS Bank Levy Release. This generally holds true if any of the following circumstances apply to your case.
- The levy notice was sent by the IRS after you paid what was owed. (What wonderful record keeping system have they “upgraded” to now?)
- The IRS assessed tax and sent the levy notice during your bankruptcy, which was when you were subject to an automatic stay of your taxes. (“You filed bankruptcy? When? Prove it!”)
- The IRS made an error (gasp!) in procedure during the assessment of your tax liability. (Please refer to the first paragraph above.)
- The statute of limitations was up before the levy notice was sent. (Do they let that sort of thing occur?)
- You did not get a chance to dispute the assessed liability. (Like they would have listened to your dispute anyway!)
- You wished to discuss collection options. (They put you on hold for how long? And disconnected you?)
- You need to make a spousal defense. (Duh! Did you not know that if you make them laugh with stories about your spouse you also get a discount and an extension?)
On the serious side though, when the decision has been made regarding your IRS Bank Levy Release, they will inform you. Should you not agree with their determination, you will be awarded a parting gift of 30 days to bring a suit to contest their decision. This only happens if they (have the audacity to) deny you an IRS Bank Levy Release.
