IRS Levy Notices

Once the IRS has assessed a balance due, they will begin collection efforts by sending out a series of letters. While the initial letters are “friendly” reminders that you have a balance due, the letters will eventually include threats to seize assets and levy your financial accounts. Ignoring these letters is not going to make the situation go away. The IRS has 10 years from the date of assessment to collect a balance, and they aren’t likely to forget that you owe. You will eventually receive a “final notice” of intent to levy which is the final statutory notice the IRS is required to send to you.

The IRS can sometimes seem like a sleeping giant. Years may pass after that “final notice” letter with nothing happening. As the 10 year collections window starts to close, IRS collection efforts will generally start to pick up. You may wake up one day years down the road to discover that the funds in your bank accounts have been frozen.  Banks have 21 days from the date the bank receives the notice to send the funds to the IRS.  If you can make payment arrangements with the IRS during this 21 day window, you may be able to prevent the funds from ever leaving your bank.

A levy doesn’t have to go this far. Here are some simple steps you can take to help prevent a levy:

  • Talk to the IRS – One of the most important things you can do is speak to the IRS (or have someone call them on your behalf). The IRS needs to know that you want to resolve the tax debt and that you will work with them.
  • Come into “Tax Compliance” – The IRS will only be willing to work with you if you are in “tax compliance”.  This means you must file any missing tax returns, and that you must be making payments for the current tax year either through payroll withholdings or estimated tax payments.
  • Make Payment Arrangements with the IRS – Once you are in “tax compliance”, the IRS will be willing to entertain payment arrangement offers such as an Installment Agreement or an Offer -in-Compromise.

If you have received a levy notice and need help dealing with the IRS, we are here for you. We can help you relieve that huge psychological burden so you feel lighter and free from all that stress.

Complimentary Consultation

Our trained and certified tax professionals work diligently to find the best outcome we can on your tax issues. Please feel free to call us at 251-621-1474 or email us at starla@stellaracctg.com for a no obligation complimentary consultation to confidentially discuss your tax levy and how we can help.