I.R.S. Tax Lien & Collection Solutions

Newsletter For Businesses And Individuals

Eighth
TAXPAYERS HAVE A NEW WEAPON TO STOP THE I.R.S. FROM TAKING THEIR ASSETS TO PAY TAX LIABILITIES

New law no longer allows the I.R.S. to take (called LEVY) your assets without first telling you it plans to do so. The new weapon is the COLLECTION DUE PROCESS

HEARING. The I.R.S. can still take your assets to pay for your tax liability, but first it must

(a) mail you by certified mail a NOTICE OF INTENT TO LEVY; and

(b) wait at least 30 days after the date on the NOTICE OF INTENT TO LEVY before takes your assets

  

Here Is How To Stop The I.R.S.

First of all, ALWAYS accept certified mail from the I.R.S. You have nothing to gain and a lot to lose by rejecting certified mail. Within 30 days from the date on the NOTICE OF INTENT TO LEVY, elect to have a COLLECTION DUE PROCESS HEARING. If you do this, the I.R.S. cannot take any of your assets until 30 days after the Collection Due Process Hearing ends. On average, it takes the I.R.S. about three to six months to conclude a Collection Due Process Hearing case. A Collection Due Process Hearing gives you a chance to argue why taking your assets is not the proper thing to do at the present time.

If you fail to request a COLLECTION DUE PROCESS HEARING within 30 days after a NOTICE OF INTENT TO LEVY is mailed, then the I.R.S. can take your assets without any further notice. The I.R.S. usually will take your wages and bank balances first, if you allow it to do so by failing to request a COLLECTION DUE PROCESS HEARING.

 
WHAT TO DO IF YOU CANNOT AFFORD TO PAY YOUR TAX DEBT, BUT DO NOT QUALIFY FOR AN OFFER IN COMPROMISE

In order to qualify for an filing an offer in compromise you must at

least offer an amount equal to the net equity value of your assets (see my web site at www.ATaxLawyer.com and click the “Offer In Compromise” button to learn about offers in compromise and how much to offer). The answer is to get your account put on “temporarily uncollectible status.”


  

The I.R.S. calls this putting your account in “status 53.” If the I.R.S. puts your account in status 53, it will not do any enforced collection activity against you. Usually, the I.R.S. will allow status 53 for six months to one year. The problem is getting the I.R.S. to grant status 53. To do so you will have to fully disclose your current financial condition of form 433-A (for individuals) or form 433-B (for businesses). If the I.R.S. refuses, try the Taxpayer Advocate Service.

To learn more about what to do when you cannot

  

afford to pay your tax debt, visit my web site and click

“Stop I.R.S. Collections.”

This newsletter does not represent legal advice as the facts of every case are different. This newsletter is a general information tool.

Authored by David C. Dodge, JD, CPA, MBA, EA. He is a civil and criminal tax litigation lawyer. His practice includes tax collection representation. His main office is located at David C. Dodge, Inc.,

19200 Von Karman Avenue, Suite 400, Irvine, CA 92612.
Telephone: (714) 378-4355
Facsimile: (714) 963-1115
Email: ATaxLawyer@aol.com