AN IRS LEVY IN HARTFORD, CT: What should I do?

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Education & Training with Tax Rep LLC

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A question that frequently comes up in my practice is what to do about an IRS Levy in Hartford, CT?

When a taxpayer fails to respond to IRS requests for either missing tax return or to provide financial information to help settle an outstanding tax debt, the IRS frequently resorts to enforced collection activities, ie. levy.

A levy is literally the taking, or seizing, of a taxpayer’s property or income.  There are 2 types of levies: a regular levy and a continuous levy.  So what should you do about an IRS Levy in Hartford, CT?

A regular levy is a levy that attaches to property owned by the taxpayer at that moment.  This can include:

 

  • ·      Bank account balances
  • ·      Investment account balances
  • ·      Amounts owed to the taxpayer by vendors or contractors

 

The Bank Levy

What most taxpayers who want to know how to deal with an IRS levy in Hartford, CT need to realize is that a bank levy only attaches to what is in the bank account at the moment the levy hits.  Amounts deposited afterward, even the very next day, are not subject to the levy.

Banks will hold the levied funds for 21 days to confirm that the levy was not a mistake and then forward the money to the IRS.

The Wage Levy

Unlike regular levies, a wage levy is a continuous levy, and therefore stays in place until released by the IRS.  This effectively forces the taxpayer to deal with the IRS, which is usually all the IRS wanted all along.

For taxpayers wondering how to deal with an IRS levy in Hartford, CT the first thing the taxpayer needs to do is contact the IRS. 

By making contact the taxpayer can learn exactly what needs to be done and move things along, which will almost always lead to the release of the levy. 

Things taxpayers will often need to do include:

 

  • ·      File missing tax returns
  • ·      Provide financial information to the IRS so it can determine the taxpayer’s collectability
  • ·      Propose either a payment plan or an offer in compromise to settle the outstanding tax debt.

 

For amounts owed less than $10,000 taxpayers can merely pick up the phone and create their own installment agreement, which is a payment plan.  If amounts are owed in excess of this the taxpayer may wish to consult with a professional who handles these types of matters.

In our office we routinely create installment agreements and file offers in compromise for taxpayers who want to know how to deal with an IRS Levy in Hartford, CT.

If you should have any questions or concerns about how to deal with an IRS levy in Hartford, CT, I would be happy to help.  Please feel free to contact me anytime at (860) 657-9040 or e-mail me at egreen@convicerpercy.com.

 

Eric L. Green, Esq.

Tax Counsel

Convicer & Percy LLP

Phone: (860) 657-9040

E-Mail: egreen@convicerpercy.com

Website: www.convicerpercy.com

 

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