A levy actually takes property to pay a tax debt (IRS.gov, Understanding a federal tax lien). Tax Debt Relief Group represents taxpayers facing levy and seizure. Call (407) 531-8705.
Key Takeaways
- Seizing business property of an individual taxpayer requires the area director’s prior written approval, unless collection is in jeopardy (IRM 5.10.2.5).
- The IRS must give written notice of seizure as soon as practicable (IRC §6335(a)), and the time of sale is 10 to 40 days from public notice (IRC §6335(d)).
- A levy must be released in the situations in IRC §6343(a)(1), including economic hardship.
- Seizures can be appealed through the Collection Appeals Program before or after they happen (IRM 8.24.1).
- Real property sold at a seizure sale can be redeemed within 180 days after the sale (IRC §6337).
What Emergency Options Exist to Stop an Immediate IRS Business Seizure?
For tangible personal property or real property used in the trade or business of an individual taxpayer, the IRS requires the prior written approval of the area director, unless collection of the tax is in jeopardy (IRM 5.10.2.5). When seizure is the appropriate case action, the revenue officer prepares Form 13719, Pre-Seizure Checklist and Approval Request (IRM 5.10.2.2). After a seizure, the IRS must give written notice of seizure as soon as practicable (IRC §6335(a)), and the time of sale cannot be less than 10 days nor more than 40 days from public notice of sale (IRC §6335(d)).
The IRS must release a levy when the liability is satisfied or becomes unenforceable by lapse of time, or when it determines the levy is creating an economic hardship due to the financial condition of the taxpayer (IRC §6343(a)(1)). A levy or seizure action can be appealed through the Collection Appeals Program. Seizures are appealable before the seizure takes place or after it is completed, and taxpayers have 10 business days after the Notice of Seizure is received or left at their home or business to appeal to the Collection manager (IRM 8.24.1). The National Taxpayer Advocate may issue a Taxpayer Assistance Order when a taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are administered, and the order may require the IRS to release property of the taxpayer levied upon (IRC §7811(a)(1), (b)).
Tax Debt Relief Group, led by Peter Kici, EA, reviews the actual notices and acts on the routes above that fit your case. If your business is facing seizure, call (407) 531-8705 now.
Understanding the Seizure Process
As soon as practicable after a seizure, the IRS must give the owner written notice that specifies the sum demanded (IRC §6335(a)), and it then gives notice of sale (IRC §6335(b)). A federal tax lien already exists on all property and rights to property of a person who neglects or refuses to pay after demand (IRC §6321). Tax Debt Relief Group deals with the IRS at every step. Call (407) 531-8705.
IRS reference: IRS.gov, What happens after my property is seized.
Rights and Protections for Taxpayers
The National Taxpayer Advocate may issue a Taxpayer Assistance Order when a taxpayer is suffering or about to suffer a significant hardship as a result of the manner in which the internal revenue laws are administered (IRC §7811(a)(1)). The statute says significant hardship includes an immediate threat of adverse action, a delay of more than 30 days in resolving account problems, significant costs including fees for professional representation, and irreparable injury or long-term adverse impact (IRC §7811(a)(2)). The order may require the IRS to release property of the taxpayer levied upon (IRC §7811(b)). Tax Debt Relief Group evaluates whether this route fits your case. Call (407) 531-8705.
Basis for Appealing Seizure Actions
The Collection Appeals Program covers a levy or seizure action that has been or will be taken (IRM 8.24.1). Seizures are appealable either before the seizure action takes place or after it is completed, and taxpayers have 10 business days after the Notice of Seizure is received or left at their home or business to appeal to the Collection manager (IRM 8.24.1). Tax Debt Relief Group prepares and presents these appeals for clients. Call (407) 531-8705 the day a Notice of Seizure arrives.
Recovering Sold or Seized Property
The IRS must release a levy in the situations listed in IRC §6343(a)(1), including when the liability is satisfied and when the levy is creating an economic hardship. Real property that was sold may be redeemed by its owners, or by a person with an interest or lien, within 180 days after the sale (IRC §6337). Tax Debt Relief Group handles recovery and release requests for clients. Call (407) 531-8705.
Frequently Asked Questions
Can an IRS seizure be stopped?
For business property of an individual taxpayer, the area director must approve a seizure in writing unless collection is in jeopardy (IRM 5.10.2.5), and a levy must be released in the situations in IRC §6343(a)(1). Which route fits depends on the notices already issued. Call Tax Debt Relief Group at (407) 531-8705.
How much notice does the IRS give before selling seized property?
The IRS must give written notice of seizure as soon as practicable (IRC §6335(a)). The time of sale cannot be less than 10 days nor more than 40 days from public notice of sale (IRC §6335(d)). Call (407) 531-8705 as soon as a notice arrives.
Is there a time limit on IRS collection?
Where a tax assessment has been made within the period of limitation, the tax may be collected by levy or court proceeding only if the levy is made or the proceeding begun within 10 years after the assessment, or within the other periods the statute lists (IRC §6502(a)). Which date applies depends on the account’s assessment history, and Tax Debt Relief Group reviews that on every case. Call (407) 531-8705.
Conclusion
In a seizure the IRS must follow approval rules (IRM 5.10.2), notice rules (IRC §6335), release rules (IRC §6343) and appeal rules (IRM 8.24.1). Tax Debt Relief Group, led by Peter Kici, EA, works those rules for clients. Call (407) 531-8705 for a free, confidential consultation.
