I came across this article on Federal Tax Levies that may be of some use when unfortunately due to the economic times, more and more people are in this predicament. I have not used their services nor do I take any professional responsibility. Howard
Did the IRS Levy Your Bank or Employer?
When your work place notifies you that they have a Notice of Levy from the IRS instructing them to keep most all of your next paycheck is one of the worst feelings. Equally bad, is when your financial institution gets a Notice of Levy from the IRS and notifies you that they intend to deliver the funds in your bank account to them. Sometimes the IRS doesn’t comply with the law and send the required notice. Usually when that happens, a Notice of Levy is a nasty surprise. 26 USC § 6330 provides in pertinent part:
(a) Requirement of notice before levy
(1) In general
No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates.
26 USC § 6330 provides this respecting the timing and manner of service of the notice:
(a)(2) Time and method for notice
The notice required under paragraph (1) shall be-
(A) given in person;
(B) left at the dwelling or usual place of business of such person; or
(C) sent by certified or registered mail, return receipt requested, to such person’s last known address;
not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period.
When you receive the aforementioned notices and look at them timely, you should see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing (CDPH) is timely asked for “the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending…” This provision renders the request for a Collection Due Process Hearing (CDPH) a extremely efficient means to halt an IRS levy on a bank account or paycheck.
On an occasion in which a levy was received by an employer but the notice had not been served as required by the above statutes, I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to CDPH hearing request being sent. Now, employees knowledgeable about these provisions in the Internal Revenue Code will be able to get their full paycheck while the hearing is pending. Almost anyone can bring a halt to an IRS levy by timely requesting a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1). I make available the forms to competently request a CDPH hearing in a situation where the statutorily required notice has not been sent at www.irsterminator.com.
There cannot be enough emphasis given that when you receive the notice, you must request the hearing timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include:
“The notice required under paragraph (1) shall include in simple and nontechnical terms-
(B) the right of the person to request a hearing during the 30-day period under paragraph (2);”
However, if the IRS never served you with a notice, it is impossible to establish when the 30 day period begins and ends. The free videos at www.irsterminator.com explain how to inform the IRS that their failure to serve you with the statutorily required notice makes your request for a hearing timely and entitles you to the suspension of collection activities including the levy at your bank or employer. Plans I have come up with to keep collection activity suspended permanently are discussed on those videos. Keeping collection activity suspended permanently is the challenging part.
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