The IRS has passed new guidelines for the new IRS levy law change. Individuals and businesses have more time now to file an administrative claim or to bring a civil action for a levy or asset seizure that was outside legal parameters, according to the IRS. When the IRS levy goes into effect, it permits the legal seizure and sale of property including wages, money in a bank account or other financial institution, vehicles, real estate and other personal assets that ht IRS levy can use to satisfy a taxpayers tax debt.
The Tax cuts and Jobs Act of 2017, the tax reform law enacted in December, extended the time limit for filing an administrative claim and for bringing a suit for wrongful levy from nine months to two years. If an administrative claim for return of the property is made within the two year period, the two year period for bringing suit is extended for 12 months from the date of filing the claim or for six months form the disallowance of the claim, whichever is shorter. THe change in law applies to levies made after Dec. 22, 2017, and on or before that date, if the previous nine month period hadn’t yet expired. That in essence is the new IRS levy law change.
Anyone who receives an IRS bill titled, Final Notice of Intent to Levy and Notice of Your Right to a Hearing, should immediately contact the IRS. By doing so, a taxpayer may be able to make arrangements to pay the liability, instead of having the IRS proceed with the Levy. It’s also important that those who receive a levy for their employees, vendors, customers or other third parties comply with the levy. Failure to do so may subject the party receiving the levy to personal liability. For more information, see the “What’s a Levy ?” page on irs.gov
Any questions about the new IRS levy change, or if yu have an IRS levy and need help, call us at 1-888-689-7861, for a free tax resolution services consultation.