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Did the IRS Levy Your Bank or Employer?

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  • legalbear7
    There are probably not many feelings worse than the one that happens when your bank or employer notify you that they have been served a Notice of Levy by the
    Message 1 of 1 , Aug 2, 2009

      There are probably not many feelings worse than the one that happens when your bank or employer notify you that they have been served a Notice of Levy by the IRS instructing them to keep most all of your next paycheck or deliver the funds in your bank account to them. Actually, if the IRS has complied with the law, a Notice of Levy should never be a surprise. 26 USC § 6330 provides in pertinent part (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.


      26 USC § 6330 provides this respecting the timing and manner of service 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.


      When you receive that aforementioned notices and read them timely, you should see that 26 U.S.C. § 6330(e) provides that as soon as a Collection Due Process Hearing (CDPH) is timely requested "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…" This provision renders the request for a Collection Due Process Hearing (CDPH) a highly effective way to stop an IRS levy on a bank account or paycheck.

      On an occasion in which a levy was received by an employer but the notice had not been served as required by the above statutes, I have seen the IRS fax a release of levy to an employer in as little as two days subsequent to CDPH hearing request being sent. This made it possible for the employee to never miss a full paycheck. It is my contention that almost anyone could stop an IRS levy by timely requesting a CDPH hearing as provided in 26 U.S.C. § 6330(b)(1). I make available the forms to competently request a CDPH hearing in a situation where the statutorily required notice has not been sent at www.irsterminator.com.

      When you receive the notice, it is VERY important that your request for the hearing be made timely. 26 USC § 6330(a)(3) specifies that the information included with the notice the IRS sends you shall include (my emphasis added):


      "The notice required under paragraph (1) shall include in simple and nontechnical terms—

      (B) the right of the person to request a hearing during the 30-day period under paragraph (2);"


      However, if the IRS never served you with a notice, it is impossible to determine when the 30 day period begins and ends. The free videos at www.irsterminator.com explain how to inform the IRS that their failure to serve you with the statutorily required notice renders your request for a hearing timely and entitles you to the suspension of collection activities including the levy at your bank or employer. Those videos also explain plans I have come up with to keep collection activity suspended permanently which is the challenging part.


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