A recent review of the IRS’s tax levy procedures showed that the IRS failed to comply with the tax laws in 28% of the IRS seizures sampled. If you receive a Notice of Intent to Levy, protect your rights by contacting Columbus, Ohio tax lawyer Matthew R. Porter.
The Treasury Inspector General for Tax Administration (“TIGTA”) is required by law to annually review the IRS’s compliance with the tax levy laws. Tax levies, or IRS seizures, occur when the IRS takes a taxpayer’s property for unpaid tax. To ensure taxpayer’s constitutional rights are protected, the tax laws require the IRS to comply with strict guidelines when seizing property to satisfy a tax debt. See I.R.C. §§ 6330 through 6344.
More Than a Quarter of IRS Seizures Not Compliant
TIGTA reviewed a random sample of 50 of the 580 seizures conducted from July 1, 2012, through June 30, 2013, to determine whether the IRS complied with legal and internal guidelines when conducting each seizure. In 14 of the IRS seizures (or in 28% of the IRS seizures conducted), TIGTA identified 19 instances in which the IRS did not comply with a particular I.R.C. requirement. The full report and IRS response can be reviewed in the following link: Fiscal Year 2014 Review of Compliance With Legal Guidelines When Conducting Seizures of Taxpayers’ Property
IRS Seizure Errors
In the report, TIGTA found that the IRS made the following errors in conducting the IRS seizures: The sale of the seized property was not properly advertised. (I.R.C. § 6335(b)). The balance-due letter sent to the taxpayer after sale proceeds were applied to the taxpayer’s account did not show the correct remaining balance. (I.R.C. § 6340(c)). The amount of the liability for which the seizure was made was not correct on the notice of seizure provided to the taxpayer. (I.R.C. § 6335(a)). The notice of the intent to levy and the notice of right to a hearing before the levy was not provided for each tax period listed on Form 668-B, Levy. (I.R.C. §§ 6330(a) and 6331(d))
Improper IRS Seizures Can Violate Taxpayers’ Rights
When the IRS fails to follow guidelines with respect to IRS seizures, it could result in the abuse of taxpayers’ rights. In the instances above, TIGTA notes that it did not identify any in which the taxpayers were adversely affected. TIGTA recommended an amendment to the Internal Revenue Manual requiring retention of: (i) all print advertisements; (ii) a copy of any Internet advertisements and mail-in bid forms; and (iii) a text copy of information provided in any radio and television advertisements of seizure sales.
In response to the report, IRS officials agreed with the recommendation and plan to correct the failed IRS seizures procedures.
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Contact Porter Law Office, LLC
The TIGTA report highlights the importance of defending your rights when the IRS threatens a levy or seizure of your property. Porter Law Office, LLC has experience with administratively defending IRS seizures (tax levies). If you have received a notice of intent to levy, or have been threatened with a seizure of your property, you should contact an experienced tax lawyer. Columbus, Ohio tax attorney Matthew R. Porter, Esq. assists taxpayers with resolving tax disputes with the IRS, including defending IRS seizures of their property, bank levies, or other levy actions. Contact Mr. Porter today for a free consultation to discuss your case.