IRS Tax Problems

How Can I Get Help With an IRS Levy?

by
Lee Reams II
on
6/28/2017
How Can I Get Help With an IRS Levy?

If the IRS has sent you a notice that they intend to levy your property in order to satisfy your unpaid tax bills, it can seem like an incredibly stressful and daunting process. Worse yet, a stressful and daunting process that doesn't give you a lot of time to figure out what to do because that final notice serves as your 30-day warning that if you don't do anything about those unpaid tax bills, your property will be seized.

Contacting a tax professional can be an excellent way to take action if you are overwhelmed at the prospect of dealing with the IRS and/or state tax department. Many tax professionals specialize in what is known as the "tax resolution" or "representation" areas of practice, which entail speaking to the IRS and other tax authorities on your behalf so that you don't have to. There are many benefits in doing so.

Benefits of Having a Tax Resolution Professional Handle Your Levy

Tax law is complicated and onerous. The materials presented to the public on the IRS and state tax department website is intentionally confusing to most people. So, one of the foremost benefits of having a professional take care of your case is that they speak the same language as the IRS and state tax departments. You may be unaware of disclosing facts that could hurt your case or of regulations that you didn't know you were going against. Revenue agents know that when they are dealing with tax professionals, they are talking to people who know the law and can't be easily intimidated.

Contesting a tax levy is also incredibly time-consuming, with not a lot of time left before the 30 days are up. You will be able to go on with your life while your tax professional gets paid to contact the IRS or state tax department for you.

Additionally, tax resolution professionals  know how to get the IRS to settle for less than what you owe. Despite the fees, you may wind up paying a lower tax bill than you would've been forced to give up under the levy.

Doing Your Due Diligence on Tax Resolution Professionals

You want to make sure that you are dealing with a reputable tax professional who is properly licensed. CPAs, tax attorneys, and Enrolled Agents are competent tax professionals. There is a huge subset of licensed tax professionals with one or more of these designations who dedicate their careers to this particular area of tax practice (opposed to just preparing tax returns). However, there are many "tax resolution" outfits staffed by people who are not the aforementioned licensed professionals and want to prey on people who owe large amounts of money. These scam operations never actually file the paperwork required to drop tax levies or get liens released.

Always do your due diligence by looking up the professionals by their names, practice names, background screenings, and check with the bar association or state licensing board for accountants to see if their records are clean. Internet reviews alone may not be enough to go on.

If you're seeking assistance in getting a tax resolution professional who can work with you locally, you can also contact a professional society such as the National Association of Tax Professionals, National Society of Tax Professionals, the National Association of Enrolled Agents or a marketplace like TaxBuzz, as these organizations have an additional set of conduct standards that their members must adhere to in addition to the practice standards enforced by the licensing boards. They will be happy to match you with a tax resolution professional in your area.

Options If You Can't Afford a Tax Resolution Professional

If you need assistance dealing with a tax levy but cannot afford a tax resolution professional out of pocket, check into resources such as the Legal Aid Society and your local bar referral service so you can get a tax attorney who will take your case pro bono.

Tax resolution issues such as contesting levies fall out of scope for a majority of Volunteer Income Tax Assistance clinics, but they are a resource worth looking into as there are many retired tax professionals who frequently volunteer with them and still have contacts with the tax authorities. They may also be able to refer you to current, practicing tax resolution professionals who can give you a discount.

If going up against the government alone sounds daunting, that's because it is. There are professionals who can help you, and speak tax, so you don't have to risk everything going it alone!

Lee Reams II, writes for TaxBuzz, a tax news and advice website. Reach him at [email protected] or on LinkedIn.

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Lee Reams II

Lee Reams II

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I am a tax and business news junkie who has spent the last 20 years developing and executing "best in class" word-of-mouth marketing campaigns for tax and accounting professionals. With TaxBuzz and CountingWorks we have taken that same commitment to quality content directly to the consumer. Keeping you up-to-date with the latest tax law changes, business growth tips and planning strategies to help you reach your best financial outcome.

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