Tag Archive for Levies

Liens and Levies: Keeping Your Clients Options Open – Part 7

Taxpayer’s Other Payment Options

We have mentioned other payment options throughout this post. We are going to put them together here.

Determining other payment options for your client takes serious research, compilation of records and information, and then sitting the client down and having a coming to reality meeting with them. This is where we help them decide on some of those option I mentioned earlier:

1. The Fresh Start Initiative – Full Pay Installment Agreement or Partial Pay Installment Agreement Read More

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Liens and Levies: Keeping Your Clients Options Open – Part 6

Getting a Lien/Levy Released

Once a taxpayer has a lien or levy in place (isn’t this where we usually come in?), the representatives primary job is to try and get the lien/levy released. There are many ways to do this. First and foremost is to get the taxpayer to pay the balance due, assuming we have determined he actually owes it.

Liens are usually “self-releasing” after the CSED date has passed. When the IRS files a lien the Form 668Y, Notice of Federal Tax Lien, has a section to let the party the lien is filed with the release date. If the CSED is extended for some reason after the filing of the Form 668Y the IRS will re-file the Lien with a new release date. Read More

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Liens and Levies: Keeping Your Clients Options Open – Part 5

Collection Due Process (CDP)

Another option in the representatives toolbox is the CDP Hearing request. Unlike the CAP, the reasons for requesting a CDP Hearing are more limited. They have strictly to do with Liens and Levies.

Timing is a critical factor in this process. Timely filing of the request preserves the taxpayers rights to Judicial Review of the decision made by the Appeals Division. If you, as a representative, are not brought in until after the time lines are blown, you may still file a request for a hearing but it will be an Equivalent Hearing (EH) and the right of Judicial Review is not available. Read More

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Liens and Levies: Keeping Your Clients Options Open – Part 4

Collection Appeal Program (CAP)

We have been talking about all the things the IRS Collections Division can do to a taxpayer who fails to pay their tax liability. Now is the time to talk about what we, as out client’s representative, can do to stand between our client and all the things the IRS will try to put in place.

As we discussed before there are very specific things the IRS must do, in order, on the correct time line, and document to be able to take these types of drastic collections activities against a taxpayer. That is the place for us to start. Did the IRS follow it’s own rules? If you are not familiar with IRM Chapter 5, Collecting Process, and Chapter 8, Read More

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IRS Temporarily Not Issuing Tax Liens And Levies During Shutdown

TaxConnections Blogger Virginia La Torre Jeker reminds to file extensionThe IRS has finally announced that it will stop the automatic issuing of federal tax liens, levies and executions during the government shut down. Unfortunately, many automatic levies have been issued by the IRS and there is no one in the IRS to talk to or negotiate with to set up installment agreements or take other actions to remove the levy. This results in great hardship for taxpayers.

The IRS has been issuing notices, some dated October 7, 2013, even though the office was to be shut down by October 1, 2013. It is hard for me to believe that this was not designed to have maximum impact upon taxpayers. In fact all the IRS services that normally assist taxpayers, whether its at a service center, or on the telephone, as well as the normal collection and auditing function, have been terminated during the shutdown. This intentional design clearly is to put a maximum negative impact upon taxpayers.

Because of the complaints, the IRS is now issued a revised listing of its operations during the government shut down where it indicates that it is stopping to send future tax liens and levies until that section of the IRS reopens. Unfortunately Read More

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