Much is written on how to get your tax levy released albeit a wage levy or bank garnishment. As a former IRS Revenue Officer I probably filed thousands of IRS levies.
The reason I levied is simply because I could not get the information I needed to close the open case I had in my working inventory and I needed to get the attention of the taxpayer.
When you are cooperating with the ACS Unit or the Revenue Officer out of the local office assigned to the case, for the most part, tax levies do not get sent out. There are of course exceptions.
If you were to call a good professional tax firm to help you through a levy, this is usually the way the process works.
1. Immediately, a power of attorney is sent to the IRS letting them know you have a representative. You should never have to speak to the IRS. Let the representative do all the talking.
2. Make sure your tax returns are filed up to date. If all returns are not filed, the IRS cannot release your levy. This is their leverage to get you in full tax compliance. The firm you hire should be able to process your unfiled taxes for you.
3. The IRS will secure a required 433-F (IRS financial statement), verify the income and expenses and work out a settlement agreement. This gives them the information on how to close your tax case.
4. The IRS will usually close your case in one of two ways:
a. Hardship cases usually go into a 3 year suspended status because of an inability to pay. This is also called currently noncollectable. If your expenses exceed your income according to the IRS national standards of income and expenses you will qualify for hardship. A good tax professional should let you know if you qualify for this .
b. Payment Agreements are agreed upon monthly installment payments. The IRS will apply the national standards test to your case and determine your ability to pay. The national standards tests is a key component to all IRS cases.
Once it is determined how the case will be closed, the IRS will then proceed to fax or send out an immediate release of the federal tax levy.
If a good professional tax firm is handling your case, have the fax number of your HR department on hand (wage garnishment) because the release can come the day the IRS is called.
