Last week’s article discussed how to avoid a federal tax levy. It is linked here. But what do you do if you already have been levied?
My firm, By The Book Taxes, located in Norwalk, CT specializes in income tax preparation for individuals, families and self-employed people. By the Book Taxes also helps clients resolve their tax debts by preparing and filing Installment Payment Agreements, Offers-in-Compromise, Currently Not Collectible and Innocent or Injured Spouse applications.
You should do the same things after a levy has occurred as you would to avoid a tax levy:
- Hire a tax professional with experience in tax resolution
- File all delinquent tax returns (last six years)
- Ensure your W-2 withholding or estimated tax payments are sufficient and up to date
You should also have the tax professional request that the IRS release the levy in full or at least partially in order to pay necessary living expenses while the taxpayer gets into compliance.
The bank has twenty-one (21) days from the time the funds are removed from the taxpayer’s account to send them to the IRS so the taxpayer and tax professional must act quickly.
Once the tax returns are all filed, work with your tax professional to tailor the best collection alternative for you with the IRS whether it’s an installment payment agreement, offer-in-compromise or currently not collectible status.
Please don’t ignore the IRS collection letters!
If you have years of unfiled tax returns or owe the back taxes, please call me. I can help.