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Notice of an income tax levy can be delivered to your business or home, delivered in person, or sent to your last known address by registered mail. If this happens to you, it’s important to know how to appeal income tax levy.
Your first course of action should be to exercise your right to ask the IRS manager for a case review. If this does not lead to a resolution, then you have the right to appeal income tax levy actions. There are two ways to do this: the collection appeals program and a collection due process hearing.
Collection Appeals Program on Income Tax Levy
You have the right to appeal the collection action before or after the levy on your bank account, property, wages, or other assets occur. Fill out Form 9423 and submit it to the IRS.
Generally the collection action on the income tax levy will be halted during the appeal process. You are allowed to file an appeal only after the IRS revenue officer or collections manger refuses your income tax levy solution.
Collection Due Process Hearing
If you wish to request a collection due process hearing you will need to fill out Form 12153 and file a request for collection due process hearing. Send the form to the address presented on the lien or the income tax levy notice. You must send the form within 30 days of receiving notice.
Wait for notice of IRS action. If you don’t agree with the IRS action you must explain why you disagree. If you find yourself with both a lien and a tax levy notice, you are allowed to appeal both actions.
Income Tax Levy Appeal Arguments You Can Use
You can use these arguments in your appeal:
Both appeals processes involve a conference with the IRS Appeals Office. The biggest difference between two processes, however, is that the collection appeals process does not allow you any further action if you lose your case. In contrast, the collection due process hearing allows you to file a lawsuit if you want.
Your first course of action should be to exercise your right to ask the IRS manager for a case review. If this does not lead to a resolution, then you have the right to appeal income tax levy actions. There are two ways to do this: the collection appeals program and a collection due process hearing.
Collection Appeals Program on Income Tax Levy
You have the right to appeal the collection action before or after the levy on your bank account, property, wages, or other assets occur. Fill out Form 9423 and submit it to the IRS.
Generally the collection action on the income tax levy will be halted during the appeal process. You are allowed to file an appeal only after the IRS revenue officer or collections manger refuses your income tax levy solution.
Collection Due Process Hearing
If you wish to request a collection due process hearing you will need to fill out Form 12153 and file a request for collection due process hearing. Send the form to the address presented on the lien or the income tax levy notice. You must send the form within 30 days of receiving notice.
Wait for notice of IRS action. If you don’t agree with the IRS action you must explain why you disagree. If you find yourself with both a lien and a tax levy notice, you are allowed to appeal both actions.
Income Tax Levy Appeal Arguments You Can Use
You can use these arguments in your appeal:
- You have paid all income taxes owed prior to the levy notice
- The IRS made a procedural error in their assessment
- The IRS sent an income tax levy notice while you were in bankruptcy
- The statute of limitation on the income tax levy has run out.
- You were not given the opportunity to dispute the assessed liability
- You want to discuss your options with the IRS manager
Both appeals processes involve a conference with the IRS Appeals Office. The biggest difference between two processes, however, is that the collection appeals process does not allow you any further action if you lose your case. In contrast, the collection due process hearing allows you to file a lawsuit if you want.
