I represent taxpayers in the greater St. Louis area and the state of Missouri. If a taxpayer has been ignoring the IRS a levy will get your attention. This is a seizure of a taxpayers property in order to resolve an outstanding tax issue. This doesn't just happen. Before IRS enforecement begins you must be given written notice and the right to a Collection Due Process hearing.
Interesting enough the latest statistics from the IRS shows only 3% of all tax payers exercise there legal right to an appeal. If someone doesn't respond in 30 days then the IRS will start hitting bank accounts, commision checks and regular paychecks with the sole purpose of getting you into compliace. When you least expect it and it happens it really stings.
Can these levies be released? Yes! But not without taking action to enter in an arrangement that satisfies the IRS.Sometimes easier said than done.
There are two types of levies. The Regular Levy and the Continous One..
Regular Levy: Is one that the IRS seizes what a taxpayer has at the moment. If you have $500.00 in the bank on a Friday and your Levy arrives that day that is what the IRS will take. Lets say you make a deposit after 2pm then there is no exposure to that deposit. Only what's in the bank account when the Levy arrives.
Continous Levy: They work a little different. It runs until the tax debt is satisfied or until the IRS releases it. If you get continous commisions or paychecks this creates a nightmare because the IRS would leave you with very little cash.
There is a misconception that the IRS doesn't seize retirment accounts. I have had that discussion with many financial advisors who were incorrect. I certainly have had that question asked of me on more than once occasion. Yes third party bill collectors cannot but the IRS is not your ordinary bill collector. Please note that if you have a plan thorugh work and you are not allowed liquidate it yourself then it's off limits to the IRS. It always a good idea to have a look at the retirement plan document. You can learn alot by reading them.
If you or someone else you know are having IRS issues please don't hesitate to call me @636-397-2759,888-490-9744,or my cell which is 636-866-4554. My email address is steveshapiroea@gmail.com
Arch Tax Resolution
620 S. Benton
St. Charles, MO 63301
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