Tax Relief: Dont Be Caught Without Warning
Posted by LWM Team on Fri, May 07, 2010
Tax payers indebted to Uncle Sam due to back taxes receive protection. If you are in such a situation, the IRS must notify you thirty days prior to taking action of a levy. See the Internal Revenue Code, Section 6330. You must get a final notice that states ‘Final Notice of Intent to Levy’ and thereafter you are legally entitled to an IRS appeals conference. This appeal allows you to halt the procedure and challenge the IRS’ intention to collect.
However, Uncle Sam has the right to levy your property under 3 specific circumstances with no warning:
Disqualified Employment Tax Levy
Any business continually refraining from giving the IRS employee tax withholdings because it utilizes the money during periods of difficulty is pyramiding employment tax responsibilities. Pyramiding is not allowed. Both Congress and the IRS decided to allow exclusion in the case of the usual condition of notice prior to levy and seizure.
An employment tax levy that is disallowed becomes participatory once you get a Final Notice of Intent to Levy, from the IRS, to collect an older tax period, if you applied for a collection appeals hearing. It is possible the IRS could also levy the newer tax period sans a notice. This could happen if your taxes pyramided within the two years from the time you appealed.
Jeopardy Levy
The IRS has the right to take action if they suspect you are placing collections of tax at risk i.e. in jeopardy. They can do so without any notification prior to the levy. Uncle Sam regards the collection of taxes being in jeopardy when resources leave the country under concealment, corruption or passed on to third parties. These actions are damaging and provide the IRS with the right to seize sans any warning.
State Tax Refund Levy
If you hold a state income tax refund and owe money to the IRS then they have the right to take hold of what you owe, without giving you a notification.