IRS Levies

Last year the IRS issued over 3.6 million levy notices! (Source: IRS Data Book, 2010)

The IRS is serious about collecting on the debts that Taxpayers owe the IRS.

Levies can cause a lot of damage and even ruin your life. A levy is the IRS' way of getting your immediate attention. What they are saying is, "we have tried to communicate with you, but you have ignored us." Levies are used to seize your wages and whatever other assets you have. If you own it, they can take it. That includes checking accounts, autos, stocks, bonds, boats, paychecks, and even Social Security checks!

The good news is that JG Tax Group has stopped levies in 3-4 business days in 91% of our cases and 99.9% of the time within 8 business days. Our Emergency Tax Relief Team will contact the IRS so that you will not lose any of your assets. We negotiate with the IRS to find the best possible solution for you, including: an Offer in Compromise, an affordable monthly payment plan, or have you declared Currently Not Collectible by the IRS. We also use the IRS law to our advantage by requesting that the IRS release a levy if the levy is creating a Taxpayer hardship.

In her latest report to Congress, the Taxpayer Advocate stated that, “In Vinatieri, 133 T.C. No. 16 (Dec. 21, 2009), where the taxpayer, who had unfiled returns, established that she was in economic hardship, the Tax Court held that the IRS’s proposed levy was not appropriate given that under IRC § 6343(a)(1)(D), the IRS must release a levy if economic hardship is present. Proceeding with a levy that would have to be immediately released constituted an abuse of discretion (Source: Taxpayer Advocate Service – 2010 Annual Report to Congress). IRC § 6343(a)(1)(D) states that a levy shall be released if “the Secretary has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer.”

Imagine waking up one morning and finding out that all your bank accounts have been cleaned out by the IRS. The IRS will take every dime. If this amount did not cover what is owed, the IRS will keep taking your money until your tax debt is paid. Although the IRS knows that levying your bank account will cause checks to bounce, and alert many people to the fact that you have tax problems, the IRS doesn't care! Their sole objective is to collect the taxes you owe.

An IRS levying your bank account might seem terrible, but pales in comparison to having your wages garnished. That's when most of your pay check goes to the IRS. The IRS doesn’t even leave you enough money to pay your bills. And worse yet, most of your pay check goes to the IRS each and every week until the tax debt is fully paid.

If that doesn't accomplish what the IRS wants, the IRS will pull out all the stops by seizing your assets, and selling them at auction. That includes everything you own including: home, cars, boats, jewelry, motorcycles, insurance policies, retirement funds, anything of value.