Automatic Tax Levy Problem to Be Fixed by IRS

Posted on Sep 23, 2013

The IRS Restructuring and Reform Act of 1998 requires the Internal Revenue Service (IRS) to give taxpayers at least 30 calendar days’ notice before levying their property. The reason for the notice is to provide taxpayers with adequate time to appeal the IRS plan to levy property. If the 30 days’ notice is not provided, and property is subsequently levied, then taxpayers’ rights may have been violated.

Last month, the Treasury Inspector General for Tax Administration (TIGTA) released its 15th annual report on IRS compliance with the IRS Restructuring and Reform Act of 1998. In that report, the TIGTA found that in most, but not all, cases, the IRS was providing the 30 days required notice. The cases in which the IRS did not provide the required 30 days’ notice seemed to occur when additional tax assessments were made that should’ve triggered an additional Notice of Levy, but did not always result in an additional Notice of Levy being sent to the taxpayer. 

The TIGTA recommended that the IRS determine the feasibility of updating its system to prevent this from happening in the future, and the IRS has reportedly agreed to do so. The IRS has also reported that it will provide training on this topic during this year’s continued professional development.

If you have questions about your IRS levy, or whether proper notice was given for your IRS levy, then our Oklahoma City tax lawyers encourage you to read our FREE library article, “If You Receive a Final Notice of Intent to Levy, You Need to Call a Tax Professional Immediately,” to learn more.

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