The IRS must send you a “collection due process” (CDP) notice before taking levy action, in order to provide you with an opportunity to propose “less intrusive” means for the IRS to attempt tax collection. It is very important to file this form with the appropriate IRS office because the IRS has been known to levy different types of bank accounts and wages immediately after the 30-day period.
Contrary to popular belief, the IRS will establish an installment agreement for taxpayers who need to make monthly installments to pay off their tax liabilities. There are two requirements, though: 1) the taxpayer must not have previously defaulted on an installment agreement, and 2) the taxpayer must be current with the filing of all tax returns. Further, the IRS will at least partially release wage and bank account levies if the taxpayer can show a substantial hardship that results from the levy action.
David A. Sprecace will provide peace of mind that you will not have to endure IRS tax collection action alone, but with a tax attorney of more than 23 years’ experience. Call 303-454-8260 or email Dave at Dave@MyTaxLex.com to set up a phone consultation.