• Brian Barto, EA

IRS About to Levy Your Assets? How to Stop a Levy and Your Rights to an Appeal

We help clients in Winchester, VA, and Martinsburg, WV that have tax debt. If you owe back taxes, you will be receiving letters from the IRS Collection Division. The IRS Collection Division has two missions: collecting past due taxes and “collecting” un-filed tax returns.

If you owe back taxes and have been notified by the IRS of the tax owed and have failed to respond, you may eventually receive a Notice of Intent to Levy. You will have received several letters prior to this “final” notice and have likely had several opportunities to deal with the issue. But, if you do what many people tend to do and ignore mail from the IRS, you will likely see this letter. A levy means that the IRS can now start seizing your assets. With the levy, the IRS can take money from you bank account, garnish your wages, or go after other financial accounts or assets you own such as your car or your house.

With this “final” notice you will also receive a Form 12153 “Request for a Collection Due Process or Equivalent Hearing,” also referred to as a “CDP.” This final notice is a critical notice because 30 days following the date of this notice, levy action may commence. The way you stop the levy action is by requesting the hearing with the Form 12153.

By filing the Collection Due Process (CDP) request a number of things will happen in the case.

● The IRS stops all collection action against the taxpayer for the tax periods listed on t the Final Notice

● The taxpayer’s case is forwarded to Appeals

● The taxpayer has the right to go to Tax Court if the taxpayer cannot work out an arrangement with Appeals; and

● The taxpayer has additional time to prepare any missing returns and sort out the proposal for resolving the outstanding tax debt.

Unfortunately, most taxpayers do not realize the seriousness of the need to file the appeal. In fact, according to the National Taxpayer Advocate, less than 3% of taxpayers ever take advantage of their appeal rights.

What happens if you have already missed the 30-day deadline to request the CDP hearing? If the taxpayer misses the 30-day deadline, there is still an opportunity for up to one year, to request an “equivalent hearing.” By requesting the equivalent hearing (having missed the 30-day CDP request deadline) the taxpayer has lost some significant rights:

● Unfortunately, requesting the equivalent hearing does NOT stop levy action. You have already missed your opportunity for this. The taxpayer or their representative still have to continue to deal with collection division while they await their appeal; and

● There is no right to go to the United States Tax Court. Anything the appeals officer decides at the equivalent hearing is final.

As you can imagine, dealing with the IRS can be a challenge, and VERY time-consuming. A good tax resolution specialist can help you get through the process. Be aware that not all tax professionals are proficient in tax resolution. So, do your homework before you hire a tax professional to represent you.

At Tax Debt Resolution Services of Winchester VA, our mission is to help you eliminate your IRS issues and the stress the IRS has created in your life and help you get back to doing what you do best! We help our clients in Winchester VA, Strasburg VA, Martinsburg WV and Charles Town WV to resolve their tax debts!. If you need assistance please feel free to contact me at 540-300-1988 or

Brian Barto

24 Weems Lane, Winchester, VA


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