Levy Help Please

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  • #38530
    Christina Coyle
    Participant

    Possible client has been hit with a levy on all her business bank accounts, and a vehicle (This seems odd)
    The business is a pre-order model, so the money is earmarked for shipping of goods to customers, and to pay the vendor to get the goods in hand. This levy has effectively made it so she can not run her business because all the funds to get packages out and pay for goods is now “gone”.
    She went to a tax lawyer that told her there is nothing to be done, that she can do a 100 day pay option, but that’s about it, and there’s nothing that can be done about the levy because they do not qualify for a “hardship”.
    Is it possible to get the portion of the levy on the business funds released to pay the manufacturer to get the goods, and the amount to ship the goods out, then start working through the case to see if they are an OIC or IA candidate? The amount owed is because she did not use a professional to do her return and was caught in an BIG understatement. Amount owed is in the high 5 figures she told me.
    Yes, I know.. Get a retainer, get POA.. I just don’t want to tell her something that may be impossible to do.

    #38561
    Eric Green
    Keymaster

    Christina, yes you can but it is really at the discretion of the IRS.

    1. can she prove this money was deposits from the customers?
    2. is she dealing with a Revenue Officer? If so contact the RO, propose a game plan to resolve this but ask for the levy release and explain it is not her money but customers. They will often release it once.

    Eric

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