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WHEN THE IRS COMES TO COLLECT – LEVIES AND HARDSHIP


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2/10/2014
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An old Jewish law professor once told me: “In this country it’s easy to know who will win a lawsuit: its orphans, widows, and United States government takes all.”  So when you are going up against the U.S. Government, you need to know what your doing and you need to get the best help on your side that you can.  This article will give you some crucial information on getting a hardship levy release, so you can meet your basic expenses and buy some critical time in which to work out a payment arrangement with the IRS.

 

What Will the IRS Do If I Owe Them Money?

 

Revenue Officers are the soldiers in the field that lead the charge on IRS Collection efforts.  When you start getting correspondence from a Revenue Officer, what is coming next is Notices of Intent to Levy and a Final Notice of Intent to Levy.

 

The Final Notice of Intent to Levy has big bold underlined centered text at the header that is supposed to clue you in to the fact that the government is about to take your property.  This is your last warning!  This is your last chance to act!

 

What will happen next is the IRS will send wage garnishment notices, levy your bank accounts, and basically go after any property or income you may have.  Sounds a bit tough?  Well, you’ve been flying under the radar for a long time, hiding your head in the sand, and this is your day of reckoning.

 

So what do you do?

 

All Is Not Lost – Claiming an Economic Hardship?

 

Let’s face it.  Most people today, with or without an IRS debt, have their hands full making ends meet.  And it isn’t because they are living an excessive or luxurious lifestyle.  It is because the economy is way down, demand for goods and services are weak, and most people are still struggling to recover from the hit they took in 2007 and 2008.

 

The first-line defense to dealing with a levy action is to document your income/expenses and show the IRS you have an economic hardship.  This is important because the IRS cannot levy income you need to meet your basic needs and reasonable monthly expenses.  This is a powerful weapon to give you a break from IRS collection efforts.

 

Don’t get me wrong.  The IRS doesn’t look at what is a “basic need” or a “reasonable monthly expense” the way you do.  But, they will work with you if you document your expenses.

 

Let me reiterate: The IRS cannot levy your bank account, garnish your wages, raid your pension or 401(k), seize Accounts Receivable paid into your business, repossess your car, sell your furniture, steal your tax refund, or utilize any of the other collection methods at its disposal if you are suffering from an economic hardship.

 

Under Section 6343(a)(1)(A), a levy may be released and property returned if (D) – the Secretary has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer.

 

WHAT TO DO NOW

 

Contact our office and John Fazzio or Manuel Zoquier can talk to you about the process of applying for a Levy Release from your Revenue Officer on the basis of a demonstrated economic hardship.



Category: Tax Law

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