IRS Plays Mean Trick on Levies
Posted on: July 29, 2009 by: admin
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IRS Plays Mean Trick on Levies
I got a call a couple days ago that triggered me writing this article. The caller had their bank account levied by the IRS. The IRS got away with $50,000. Because 26 USC § 6330 provides in pertinent part:
(e) Suspension of collections and statute of limitations
(1) In general
Except as provided in paragraph (2), if a hearing is requested under subsection (a)(3)(B), the levy actions which are the subject of the requested hearing…shall be suspended for the period during which such hearing, and appeals therein, are pending.
I asked the caller if he had requested a Collection Due Process Hearing. He replied that he had, but that it had been denied. I exclaimed, “How could they deny it?” He replied that the IRS had told him it was denied because his request for the hearing, which the caller mailed after the Notice of Levy was sent to the bank, was not made timely. Ohhh, hurt me. I asked the caller, did they send you the notice? I have this provision of § 6330 fixed in my head (my emphasis added):
(a) Requirement of notice before levy
(1) In general
No levy may be made on any property or right to property of any person unless the Secretary has notified such person in writing of their right to a hearing under this section before such levy is made. Such notice shall be required only once for the taxable period to which the unpaid tax specified in paragraph (3)(A) relates.
Since so many people I have talked to haven’t received a notice of their right to hearing prior to the IRS sending a Notice of Levy, I figured that was the case once again. The caller replied that they had, but, they had sent it several months in advance of the levy arriving at the bank. 26 USC § 6330 provides this respecting the timing of the notice (my emphasis added):
(a)(2) Time and method for notice
The notice required under paragraph (1) shall be-
(A) given in person;
(B) left at the dwelling or usual place of business of such person; or
(C) sent by certified or registered mail, return receipt requested, to such person’s last known address;
not less than 30 days before the day of the first levy with respect to the amount of the unpaid tax for the taxable period.
This is not the first time I have heard of this happening. I’ve given some thought to why this happens and have arrived at a conclusion. I think that the provisions of 26 USC § 6330 gives the IRS fits. But, the IRS has figured out that their levy has the best chance of working several months after sending the notice of a right to a hearing described in 26 USC § 6330(a)(1), and the corresponding levy suspension described in 26 USC § 6330(e)(1), after the people have had a chance to become less guarded.
I am convinced that many people receive their notice of their right to a Collection Due Process Hearing and do not take action on it because they do not know what to do. Also, I don’t think they recognize the ominous nature of that notice; it is telling them that the IRS is serious about levying their paycheck or bank account. At www.irsterminator.com I describe in nine 2-10 minute long videos how to very effectively take advantage of the opportunity for a Collection Due Process Hearing, and it’s suspension of collection activity, with a minimum of effort on your part.
Best times to call: 8:30 am-9:00 pm MST
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www.cantheydothat.com (a free lien evaluation) Send an email to:
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