Know Your Tax Rights
No matter the conditions or causes of an IRS Tax Levy, every individual is granted the following rights. Firstly, the IRS cannot assess a lien on the owner’s residence if amount of funding the IRS requires from the levy totals less than $5000. Secondly, the law grants that the IRS must follow Due Process in the collection of a tax liability. Therefore, The IRS must send the Final Notice of Intent to Levy and Notice of Your Rights to a Hearing 30 days or more prior to issuance of the levy. Additionally, if the Statute of Limitations on a tax debt expires, then the IRS must stop collecting from the owner of the property.
In the event that a taxpayer has appealed the levy unsuccessfully via a Collection Due Process hearing, an additional 30 days is given, during which time the taxpayer may continue his/her appeal with the US Tax or Federal Court.
The IRS must release an IRS wage levy once an agreement is made with the taxpayer that their back tax liability is not collectible.
Additionally, should a taxpayer have filed an Offer in Compromise prior to the assessment of the IRS Tax Levy, the IRS cannot legally levy the property of the taxpayer, as long as the decision to either accept, reject, or return the Offer is still pending, and for 30 days after the decision has been made. For this reason, as well as the variety of options and opportunities for payment under an Offer in Compromise, it is advised for an individual with outstanding tax debt to consider filing an Offer before the IRS resorts to levying the property.