How I Handle IRS Levy Issues

An IRS levy is a serious issue that can be challenging to overcome, nevertheless positive outcomes are achievable. It has been done before and can be done again. Cynthia Kuhne has helped thousands of taxpayers stop IRS levy actions against their paycheck or bank accounts. The following are a few of the real life cases she has handled.

Case #152- Client owed approximately $20,000. A levy was sent by the IRS to his employer. The client had 1 unfiled return. I went to the IRS after preparing that year. I had 24 hours to get the levy removed before my client’s pay check would be levied once more, leaving him very little to live on. The IRS explained they would not release the tax levy or set up a payment plan since there were actually two years that had not been filed. The IRS requires a individual to be compliant with tax filing before releasing a levy or setting up a payment plan. Realizing the timeline I had, I asked the IRS agent if they might be willing to fax me over the information so I could prepare the return. The IRS actually waited for me to prepare the return, have it authorized and faxed back over. My clients check was not levied because I had the levy discharged the same day and faxed to his employer.

Case #85- Client's case had been with a revenue officer who was currently garnishing his income.The client had 3 years of unfiled tax returns and close to $285,000 in total tax debt.My client recounted that a bonus of $21,000, in which the IRS would take, was due to him on his next paycheck nearly three weeks away. I worked with the revenue officer on the case however he was out during the next week. At that time my clients payroll let him know if they could not delay payroll for another 2 weeks and if they did not have a levy released by Friday, they would deliver the funds to the IRS. Since the revenue officer was out of town, my only alternative was to find out if the manager would work with me. It just so happened that I had worked with him on another case so he was inclined to work with me. The IRS levy release was faxed to the employer within the hour of the funds being levied.

Case #169- Client owed over $100,000. The IRS levy was placed on a joint bank account, held by the taxpayer and her mother. This is legal as long as the taxpayer's name appears on it. In only one day the IRS had taken approximately $96,000 out of the account. Of course my client and her mother were troubled. I was able to work with the IRS to release the levy and all of the funds were put back in the account. I then submitted an Offer in Compromise for my client to resolve the tax liability with the IRS.

Case #492- Payroll tax troubles caused these clients to owe approximately $100,000 to the IRS. This was mostly due to penalty charges from the IRS not receiving the W-4’s for the employees for the year. My clients had worked for years with the IRS to no avail. The IRS had already levied and taken around $37,000 from my clients. I worked with the IRS so that all penalties were wiped out. Not only that but I was able to get the IRS to send the $37,000 back with interest.

Case #58- My clients owed over $200,000. The IRS sent a levy to the place of their employment. I was able to have the levy released within a few days and go forward to set up a month-to-month repayment plan that they could afford.

Case #625- $74,000 of the $100,000 that my client owed was due to them not filing a tax return for one of the tax years. That year, the IRS filed a return for the individual. When it was not paid the IRS sent a levy to his employer. I was not only able to have the IRS levy released within 24 hours of my client contacting me but I also prepared the return to override the IRS reducing the tax liability to $297.