The main focus of my practice is civil and criminal taxpayer representation. Many taxpayers who come to see us in New Haven, CT or one of our other offices are generally frightened of having their bank acounts or wages levied by the IRS. Inevitably the discussion turns to what can we do to avoid a levy by the IRS?
The answer is easier than you think, though often what people do not want to do.
Here are the three steps to avoid an IRS Tax Levy:
1. File any missing tax returns for the last 6 years;
2. Make your current tax payments;
3. Talk to the IRS
Missing Tax Returns and Current Tax Payments
In order to work out a deal with the IRS, any deal, a taxpayer is required to be in tax compliance, which means the taxpayer has filed the last 6 years of tax returns and are making their current tax payments. The reason for this is that it does not make any sense for the IRS to agree to get into a payment arrangement or accept an offer-in-compromise with the Taxpayer if the taxpayer is just going to default when they file their current return and owe money. So the very first step is to get into tax compliance.
Talk to the IRS
You need to speak to the IRS (or at least someone needs to do it for you). The IRS needs to know that you want to resolve this and that you will work with them. Critical to that is to pick up the phone and call the IRS, let them know you are filing any missing returns, will get your current tax payments in, and will be submitting a proposal to resolve the tax debt. In doing so you can avoid having it (the IRS) take enforced collection action against you and/or your assets (meaning tax levies).
Green & Sklarz LLC
700 State Street, Suite 100
New Haven, CT 06511
Ph. (203) 285-8545