Stop IRS Notice of Levy &  Seizure, Since 1982.

We are a team of tax attorneys, CPAs and former IRS agents managers and tax instructors. We have over 65 years of working directly for the Internal Revenue Service and the local, district, and regional tax offices of the IRS.

Call us today for a free initial tax consultation and we will walk you through the process of getting IRS tax relief for tax levies ways garnishments and IRS seizures.

There is no legal distinction between levy and seizure.

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What is a tax levy?

Notice of Levy is often used to take a taxpayer’s bank account, wages, other income, or accounts receivables.

Seizure procedures are used to take a taxpayer’s car, house, or business property.

If a taxpayer’s car is seized in a commercial parking lot, seizure procedures include giving the attendant a Form 668-A(c)(DO), Notice of Levy, to demand that the car be turned over.
There is no required sequence for levying.

Generally, though, levy funds that are held by a third party first. This is usually less time consuming.

Levy Appeals

Generally, taxpayers are entitled to a Collection Due Process (CDP) hearing under IRM 6330, or an equivalent hearing.
. Notices of levy can also be appealed under the Collection Appeals Program (CAP) regardless of whether the taxpayer can appeal under IRC 6330.

CAP was created to give taxpayers a chance for administrative review that is independent from the Collection function.

IRS Pre-Levy Actions

Taxpayers have the right to a fair and just tax system.

That is, taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay, or ability to provide information timely. Taxpayer Bill of Rights #10.

Accordingly, levy determinations are made on a case-by-case basis and Revenue Officers must exercise good judgment in making the determination to levy.

When determining if a levy is appropriate consider the following:

The taxpayer’s financial condition, including information discussed in related to economic hardship determinations
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When determining whether the financial information available is sufficient to establish an economic hardship each levy should be considered independently.

In general, it will be necessary for the taxpayer to provide information for this determination to be made. However, if the Revenue Officer can verify from the information available that the levy will cause an economic hardship, the levy will not be issued, because if there is economic hardship, the levy must be released under IRC 6343(a)(1)(D).

Other Considerations

• The taxpayer’s responsiveness to attempts at contact and collection
• The taxpayer’s filing and paying compliance history
• The taxpayer’s effort to pay the tax
• Whether current taxes are being paid

There is no requirement that taxpayers experiencing economic hardship be in filing or payment compliance before a levy is released. See Vinatieri v. Commissioner, 133 T.C. 392 (2009).

Thus, when the Service determines that the levy will create an economic hardship, do not issue the levy as a means to secure other compliance, e.g., missing tax returns.

IRS cannot levy on property until the taxpayer must be given a

• Notice and demand

• Notice of intent to levy, and

 Notice of a right to a Collection Due Process (CDP) hearing

When a notice of levy is issued to a third party, it is a third party contact, but the Service takes the position that CDP notices sent to the taxpayer pursuant to IRC 6330 constitute reasonable advance notice that contacts with third parties may be made in order to effectuate a levy.

The notice and demand required by IRC 6303(a) must be left at the taxpayer’s home or business, or mailed to the taxpayer’s last known address.

This is normally taken care of by a master file notice mailed shortly after there is an assessment.

The taxpayer has 10 days to pay the amount that is owed. If the taxpayer neglects or refuses to pay the amount due, the Federal tax lien arises.

If the amount specified in the notice and demand is paid within 21 calendar days after the date of the notice and demand (10 business days if the amount reflected is $100,000 or more), interest is not imposed for the period after the notice and demand on the amount so paid.

In addition, the taxpayer must be given a notice of intent to levy at least 30 days prior to the date of the levy.

The taxpayer has 30 days to pay the amount that is owed before property can be levied. See IRC 6331(d) .

This notice must be:

A. Given in person

B. Left at the taxpayer’s home or business, or

C. Sent to the taxpayer’s last known address by certified or registered mail

IRS will 
use registered mail only if the taxpayer is outside the United States.

There is no international certified mail.

Notice of Collection Due Process (CDP) Hearing Rights.



If collection is in jeopardy, property can be levied immediately if the taxpayer has been provided notice and demand for immediate payment.
Generally, the Service will give taxpayers 10 days to pay the tax liability following issuance of the IRC 6303 notice of assessment and demand for payment, before issuing the IRC 6331 notice of intent to levy and IRC 6330 notice of a right to a CDP hearing.

Both the IRC 6331 notice of intent to levy and the IRC 6330 notice of a right to a CDP hearing must be given at least 30 days before the day of the first levy for that tax liability.

Treas. Reg. 301.6331-2(a)(1) permits the Service, in satisfying the 30 day requirement of IRC 6331(d), to issue the IRC 6331 notice of intent to levy at the same time as the IRC 6303 notice of assessment and demand for payment.

Also, the Service may issue the IRC 6330 notice of a right to a CDP hearing at that same time. The IRC 6330 and/or 6331 notices should not generally be issued simultaneously with the section 6303 notice or during the section 6303 time frame.

However the Service may determine that waiting 10 days after issuing the IRC 6303 notice and demand before issuing the IRC 6331 notice of intent to levy and/or the IRC 6330 notice of a right to a CDP hearing is not in the government’s interest if one or more of the circumstances listed below has occurred.

The IRC 6330 and /or 6331 notices may be issued simultaneously with the section 6303 notice or during the section 6303 time frame if the taxpayer:

• is pyramiding employment taxes (in business, not current with FTDs, and two or more trust fund modules assigned to a revenue officer);

• has made to the Service, for two or more periods, frivolous arguments which are listed in Notice 2010–33, 2010–17 IRB 609, or subsequent updates. See Notice 2010–33 at http://www.irs.gov/pub/irs-irbs/irb10-17.pdf;

• has failed to file required returns for two successive periods or three non-consecutive periods, for which the Service has prepared substitutes for return (and issued a deficiency notice where applicable), at least one of which is included in current or proposed notices.

Verify Possible New Addresses Received from Asset Locator Research when a new address is received from asset locator research.

The taxpayer has 30 days in which to request a CDP hearing.

Allow 15 days after the 30 day period for receipt of a timely mailed request for CDP hearing.

When a levy is to be served, the taxpayer must also be given a notice of a right to a hearing per IRC 6330.

The taxpayer has 30 days after this notice is given or mailed to ask for a hearing, before property can be levied.

This notice is given to the taxpayer in the same manner as the notice of intent to levy, except that if it is mailed, a request for certified or registered mail return receipt MUST be included.

See IRM 5.1.9.3,Collection Due Process, for instructions about the taxpayer’s right to a hearing, including whether the taxpayer can appeal, when the taxpayer can appeal, and the consequences of asking for an appeal.

The taxpayer can waive the right to a hearing. IRM 5.11.1.3.3.11, Waiver of Notice of Intent to Levy/Notice of a Right to a Hearing.

Note:
There is no right to a hearing when child support obligations are being collected. IRM 5.11.1.3.3.12, Issuing Notice of Intent to Levy for Child Support Obligation Bal Dues.

There are 4 exceptions to the pre-levy notice requirements of IRC 6330.

1. When the collection of tax is in jeopardy under section 6331(a). See IRM 5.1.9.3.14,Jeopardy Levy, State Income Tax Levy Program (SITLP), and Federal Payment Levy Program (FPLP) and IRM 5.11.3, Jeopardy Levy without Jeopardy Assessment.

2.A levy is served on a State to collect a Federal tax liability from a State tax refund, referred to as the State Income Tax Levy Program (SITLP).

A taxpayer’s state tax refund can be levied, even though the taxpayer may not have already been sent a notice or a right to a hearing.

See IRM 5.1.9.3.14,Jeopardy Levy, State Income Tax Levy Program (SITLP), and Federal Payment Levy Program (FPLP).

3,A disqualified employment tax levy is served. See IRM 5.1.9.3.15,Disqualified Employment Tax Levy.

4. A Federal Contractor Levy is served. A Federal contractor levy is any levy if the person whose property is subject to the levy (or any predecessor thereof) is a Federal contractor. See IRM 5.11.1.6,Post-Levy Actions – Federal Contractor Levy.

In each of the above situations, the taxpayer will be given the opportunity for a CDP hearing within a reasonable period of time AFTER the levy; i.e., generally within 10 days.
10.

When counting the 10 day or 30 day periods, do not count the day that the notice is given or mailed to the taxpayer.

Then, when the time to pay has run out, the next action can be taken on the following day.

Caution:
As long as a request for a hearing is correctly addressed and postmarked timely, it is timely.

Allow 15 additional days after the 30 day period ends before levying in case the taxpayer mails a request for a hearing on the 30th day.