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. (more…)

If a taxpayer does not pursue tax resolution with the IRS, the IRS may institute a number of levies, including salary, federal benefits, property, bank accounts, etc. The State Income Tax Levy Program expedites the IRS’ seizure of State Income Tax refunds to be used to alleviate tax debt. At the present time, only certain states in the U.S. take part in the program; however, the State Income Tax Levy Program is expanding to possibly include business refunds and more states as time goes on.

In order to place an IRS tax levy on State refunds, the IRS cross-references a list of persons with Federal Tax liability with participating states’ lists of state tax refunds, resulting in the individuals on which a levy may be assessed. If state tax refunds are withheld, the particular state will send a notice of the levy. Subsequent to the levy, the IRS will send a notice, granting the right to appeal. On the other hand, if a previous notice of intent to levy was sent, advising the taxpayer of appellate rights and due process, the aforementioned notice will not be disseminated. (more…)