IRS Levy and Request for Collection Due Process Hearing

The Internal Revenue Service and the State taxing authorities have at their disposal an arsenal of methods to aggressively and efficiently collect taxes owed. Andreozzi Bluestein LLP’s professionals know how to navigate these waters and assist clients in resolving complex tax collection matters.

IRS Levy and Request for Collection Due Process Hearing

The Internal Revenue Service and the State taxing authorities have at their disposal an arsenal of methods to aggressively and efficiently collect taxes owed. Andreozzi Bluestein LLP’s professionals know how to navigate these waters and assist clients in resolving complex tax collection matters.

Prior to actually levying on assets to enforce collection, the Internal Revenue Service must send certain required notification.  The IRS will send what can be called “warning notices” which are entitled Notice of Intent to Levy.  These notices will bear symbols in the upper right hand corner, such as CP 504 or CP 523.  They are, in effect, notices to encourage you to pay the liability before enforced collection action is taken.  A Final Notice of Intent to Levy, however, must be sent before an actual levy can be issued.  This notice, which is the one that cannot be ignored, will contain a Form 12153 for a Collection Due Process Appeal.  It will also provide information as to your Collection Due Process Appeal rights.  It allows 30 days to file said Appeal.  Absent the filing of a Collection Due Process Appeal, the Internal Revenue Service can then levy on wages, bank accounts and other property.

The ability to request a Collection Due Process Hearing or an Equivalency Hearing can be a powerful tool to control the collection process and propose less intrusive collection alternatives.  It can even be used to raise the validity of the underlying liability at the hearing if you did not receive a notice of deficiency for the liability in issue or did not otherwise have an opportunity to dispute the liability.  However, timing and strategy decisions come into play depending on the type of tax liability in issue.  It is important to contact a law firm that is knowledgeable in tax procedure to analyze your particular situation before valuable Appeal Rights are lost or misused.

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