IRS Levies Are Nothing to Laugh At
Terry Peltz, Director
Performance Advisors LLC
June 2, 2011
You simply cannot escape from the IRS if you owe them money. There is no easy way to get rid of a Tax Levy and can be difficult to negotiate with the IRS. If you owe the IRS, contact a tax professional to help you.
How long does an IRS levy last?
A levy on your wages is continuous until your debt is repaid. If you work for the same employer, the IRS will keep taking part of your pay check every pay day. Bank levies, however, are a one-time thing. The IRS will send you a notice telling you they will be accessing your account a second time before they withdraw money from it. They do, however, have the right to seize your assets as long as you owe them money, but they can only do this until the statute of limitations expires.
Can I sue the IRS for levying my assets?
If you believe the IRS has incorrectly levied your assets, you can sue (Internal Revenue Code 6343B). The IRS will have to return your property or the value of the property, with interest and they will have to pay attorney and legal fees. However, don’t try to sue the IRS if you actually owe them money. You won’t win.
Can the IRS levy my business assets?
If you don’t pay your taxes, the IRS has the right to seize your business assets and even shut your business down. The IRS can effectively close a business by taking all receivables and anything of value within the business. This doesn’t happen very often because the IRS won’t get much from taking equipment and other small items if you own a small business. They know you will never be able to repay them if your business is shut down, so they will usually find an alternative method of claiming the money they are owed.
Helpful Suggestion: If your assets have already been seized or auctioned, you could still stand a chance of getting your property back (Internal Revenue Code 6337). The term “Right of Redemption” means you can repurchase your property from the person who bought it. You should think seriously about this option if you really need the property back.
© June 2, 2011 Performance Advisors LLC All Rights Reserved